At least two people have died and over 20 others have been injured in an explosion at the popular Anarkali Bazaar in the heart of Lahore.

Security forces have cordoned off the area to investigate the nature and intensity of the blast.

The casualties have been moved to a nearby hospital for treatment, with seven of the injured believed to be critical.

The explosion took place at a prize bond shop within the market, with sources within the forensic department suggesting it was done using a timer. Initial reports had suggested it was a cylinder blast.

The deceased has been identified as 31-year-old Muhammad Ramzan.