At least 22 people have been killed and several others wounded after an explosion struck a busy road near a hotel in the Pakistani city of Rawalpindi, near the capital Islamabad.

The blast occurred on Monday close to Pakistan's army headquarters, however, police say the target may have been the Shalimar Hotel.

"The death toll may rise," an official told the AFP news agency.

The blast occurred close to Pakistan's army headquarters, near the Shalimar Hotel, where 10 attackers mounted a nearly 24-hour siege last month.

"There was a blast on Mall Road in Rawalpindi. We are trying to get details from our people on the ground. Casualties are feared," Mohammed Akhlaq, a police officer, told the AFP news agency.

"It was a huge blast. I saw smoke rising from one of the buildings. I sped up to escape," Sajid Khan, a witness, said.

More than 100 people were killed after a huge car bomb struck a busy market in Peshawar last week. 
  
A surge in violence has hit Pakistan in recent weeks, leaving more than 300 people dead last month alone as the military launches a major offensive against the Tehreek-e-Taliban (TTP).