A passer-by was wounded in the blast in Hayatabad neighbourhood, which lies close to Khyber tribal district, where the army is battling Taliban-linked militants.
The bomb targeted a convoy of security personnel that passed by shortly before the blast and escaped unharmed.
“One person passing in his car was killed while another passer-by was wounded, both of them are civilians,” Rana Umer Hayat, a senior police official told AFP.
Peshawar has been the scene of countless bomb and gun attacks in the Pakistani Taliban’s nearly eight-year fight against the state.
The city suffered the worst terror attack in Pakistani history in December when Taliban gunmen massacred more than 150 people at Army Public School (APS), most of them children.
But since then there has been something of a lull in violence. The last deadly attack in the city came in February when three heavily armed Taliban militants stormed an Imam Bargah, killing 21 people.
The Pakistan army has been waging a major campaign against Taliban and other militant strongholds in the North Waziristan tribal area since June last year. -AFP