Sajjad Afzal, the local police chief, said the bomb was apparently rigged to a motorcycle and was detonated by remote control.
Apart from inflicting casualties, the bombing also left several shops at the market badly damaged.
Rescuers took the wounded to hospital, Afzal said.
Balochistan has long struggled with a low-level insurgency by the Balochistan Liberation Army and other small separatist groups demanding independence from the central government in Islamabad.
Authorities claim to have quelled the insurgency but violence has persisted.
Abdul Qudoos Bizenjo, the chief minister of Balochistan, condemned the bombing, describing it as a terrorist attack.
“Terrorists are trying to create uncertainty through such attacks to achieve their nefarious goals, but we will not allow these anti-state elements to succeed, “ he said without specifically blaming anyone.