The camp houses people fleeing unrest in the tribal districts bordering Afghanistan, where many Taliban- and al-Qaeda-linked militants shelter.
Fuad Khan, police official responsible for security of the camp quoted by AFP said: “The bomb exploded in a car parked near the administration office where refugees had lined up to get ration and new arrivals were being registered.”
“Several camps in the vicinity of administration office were also ripped off by the bomb blast,” Khan told AFP news agency.
“I saw about 20 casualties around me as the smoke and dust cleared, but cannot say how many were dead and wounded,” Khan said.
Peshawar and its surrounding districts, located on the border of Pakistan’s restive tribal region, have come under frequent attack by the Taliban and other militant groups in recent years.
No group has so far claimed responsibility behind the incident.