According to latest reports, the explosion took place at an under construction building in DHA, Lahore. Four cars and 12 motorcycles were also damaged as a result of the blast while the windows of nearby buildings were also shattered.

Rescue officials said the blast was caused by a generator. Police did not rule out possibility of any terrorist activity saying that the area was issued a terror alert last week.

Police have cordoned off the area and they said they were investigating the incident. Majority of the injured have been taken to General Hospital. Rescue sources informed that eight of the injured persons were in critical condition.

The blast came two weeks after an apparent suicide blast killed 13 people at a protest in Lahore, shattering the city's growing sense of security.