"Initial investigations show that it was a time-controlled device on a motorbike which was the cause of the blast," Rana Arif, spokesman for Lahore police, said.
Hospital sources and police said two people were killed -- including a child -- and 22 injured in the blast, which happened in old Lahore's busy Anarkali shopping district.
There was no immediate claim of responsibility, but there have been a series of blasts and attacks against police since December, when a truce between the government and Pakistan's Taliban lapsed.