The police said the remote-controlled bomb was planted in the bicycle about 30 feet away from the main gate of Ziarat Kaka Sahib Shrine in Nowshera city.
Federal Interior Minister Rehman Malik said an illegal mobile SIM was used in the attack.
A large number of people were present at the time of the blast a fair was organised near the shrine, Dunya TV reported.
Condemning the bomb blast, President Asif Ali Zardari and Prime Minister Raja Pervez Ashraf directed the concerned authorities to provide the best medical treatment to those injured in the blast.
Khyber Pakhtunkhwa Governor Barrister Masood Kausar and Chief Minister Ameer Haider Khan Hoti have also condemned the explosion.