Preliminary reports indicate the blast was caused by an Improvised Explosive Device planted on a roadside to target a police vehicle.
No casualties have been reported with an official saying the IED was detonated near a hotel in the city.
Provincial governor’s spokesman Ataullah Khogyani confirmed the incident and said the target of the explosion was a vehicle of the Afghan Border Police.
He said the IED was planted on a roadside located not far from a hotel and another explosive device was also discovered from the same area.
No group has so far claimed responsibility behind the incident.
This comes as capital Kabul and southern Helmand and Kandahar provinces were hit by a string of deadly attacks on Tuesday, leaving scores of people dead or wounded.
The Taliban group claimed responsibility behind the attack in Kabul but rejected role in Kandahar explosion that left 5 UAE diplomats dead and the UAE ambassador wounded with the Kandahar governor.