According to the local officials, the incident took place late on Saturday night after explosives planted in a vehicle went off in a crowded part of the city.
Provincial police Chief Abdul Raziq Qaderi confirmed that the explosion took place in a taxi vehicle due to a magnetic bomb explosion and as a result ten people were wounded, including the taxi driver.
However, the provincial hospital sources are saying that twelve people were wounded in the explosion and a number of them are in critical condition.
No individual or group has so far claimed responsibility behind the incident.
Balkh is among the relatively calm provinces in North of Afghanistan where terrorist-related incidents are rarely reported although the anti-government armed militant groups often try to stage attacks in some key parts of the province, including the Mazar-e-Sharif city.
The local officials had earlier said that the signs of ISIS activities were also noted in some remote districts of Balkh besides the Taliban insurgents are attempting to expand their insurgency in this province