Officials said emergency had been imposed in all hospitals across Parachinar, the capital of Kurram agency.
Prime Minister Nawaz Sharif condemned the attack, saying that terrorists involved in the attack will be taken to task and all out efforts will be taken to eliminate terrorism.
Pakistan has seen a dramatic improvement in security in the last two years, but groups such as the umbrella Pakistani Taliban and other extremist outfits still retain the ability to carry out attacks.
Security officials also confirmed that the blast was the result of a vehicle-borne improvised explosive device which exploded after the "suspicious" driver was spotted by policemen.
"It's possible the IGP office was the target, or the assailants were trying to enter the (Army) cantonment which is close by", he said. Asad Mansoor, the militants' spokesman, vowed more such attacks as part of the extremist group's campaign aimed at imposing Islamic laws in the country.
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There was no immediate explanation for the dual claims.
Later, the Islamic State group said in a competing claim that it was behind the attack.
Pakistani nursing staff attend an injured girl at a hospital in Quetta, Pakistan, Friday, June 23, 2017. There was an explosion. "The intensity was so severe that when the dust settled, a victim's leg was near me".
Balochistan has been facing insurgency by Baloch nationalists and Islamist militants.
Bordering Iran and Afghanistan, it is the largest of Pakistan's four provinces, but its roughly seven million inhabitants have long complained they do not receive a fair share of its gas and mineral wealth.
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