The powerful blast left devastation across the shopping street in Lahore, Pakistan.
At least 7 people have been reported dead and 15 injured in the attack.
Armed police are on the scene following the explosion which destroyed cars and shattered windows of shops.
Pakistani officials have confirmed it was a bomb attack, AFP reports.
Security forces, suspecting the bomber was still alive, cordoned off the market in a residential neighbourhood, home to banks and coffee shops, and people were not being allowed to leave or enter.
A witness who works at a bank in the market said that his workplace was shaken by a “frightening” explosion.
“We left the building and saw that the motor-bikes parked outside were on fire and all the windows in the surrounding buildings were shattered,” the witness, Mohammad Khurram, said.