DIG Operations Lahore Dr Muhammad Abid Khan told media that 20 people were wounded in the attack, adding that the police are currently carrying out an investigation which is in its initial stage.
According to the authorities, the blast was caused by a planted device, but it remains unclear at this stage if it was improvised explosive device (IED) or a time device.
Mayo Hospital Medical Superintendent has confirmed to have received a body, saying that three people are critically wounded.
Glasses of nearby buildings were shattered due to the blast while several motorbikes parked near the site faced damages.
Punjab Health Minister Dr Yasmin Rashid has said that the injured include a woman, adding that 27 wounded were shifted to the hospital. Four people were critically injured, she said.
Further, the minister said that forensic evidence was being collected after which a report will be presented.
Meanwhile, Punjab Chief Minister Usman Buzdar has condemned the incident and sought an inquiry report. Prime Minister Imran Khan, Information Minister Fawad Chaudhry, Pakistan People's Party (PPP) Chairman Biawal Bhutto-Zardari and Pakistan Muslim League - Nawaz (PML-N) Vice President Maryam Nawaz have also condemned the incident and prayed for early recovery of those injured in the attack.