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The attack damaged a house that commander Haji Akhunzada was building in Pakha Ghulam on the outskirts of Peshawar.
"It was a suicide attack, four people have been killed. Haji Akhunzada is among the dead," Imtiaz Shah, a senior police officer, told AFP.
A bomb disposal official said it was a suicide attack.
"Evidence collected from site shows that a suicide bomber was involved," Hukam Khan told AFP.
Siraj Ahmad, the top government official in Peshawar, told AFP that Akhunzada and his son-in-law were among the dead.
The bomber was dropped off by a motorcyclist, then walked to the house under construction and detonated his vest, Ahmad added.