The bomb went off in a children's park and most of the victims are believed to be women and children.
"When the blast occurred, the flames were so high they reached above the trees and I saw bodies flying in the air," said Hasan Imran, 30, a resident who had come to Gulshan-e-Iqbal Park for a walk.
A Pakistan Taliban faction, Jamaat-ul-Ahrar, has said it carried out the attack.
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