The outlawed Jundullah and the Tehreek-i-Taliban Pakistan (TTP) affiliated Jamaat-ul-Ahrar outfits have claimed responsibility for the blast near the Wagah border wherein 60 people were killed on Sunday.
According to Dawn, at least 110 people have been injured and victims include 10 women and seven children.
Punjab police chief Inspector General Mushtaq Sukhera said that the bomb exploded near a paramilitary soldiers' checkpoint at Wagah border outside a restaurant on the outskirts of Lahore city.
Sukhera said that the explosion could also have been a consequence of a suicide blast.
Pakistani Prime Minister Nawaz Sharif has called for a report on the incident and an emergency has been declared at all hospitals in Lahore.