Militants have struck with bombs numerous times since intensifying their war against the government in 2007 but the Islamists have suffered setbacks this year raising government hope that the security forces might be getting the upper hand.
The bomb went off on a main road near the city of Kohat, 150 km (100 miles) southwest of Islamabad, and brought down some shops beside the road, police and witnesses said.
"We have removed 10 bodies which are totally mutilated and are recognizable," resident Rapheel Hussain said by telephone.
"I'm trying to find my brother. I don't know whether he's been killed or is stuck under the debris of the fallen buildings."
Police spokesman Fazal Naeem said 14 people had been killed.
Kohat is a garrison town, close to the lawless ethnic Pashtun tribal belt on the Afghan border, which is a major sanctuary for militants battling in both Pakistan and Afghanistan.
The area where the attack took place is mostly inhabited by minority Shi'ite Muslims and there has been sectarian violence in the region in the past.
The Taliban militants are from the majority Sunni community and attack on Shi'ites are part of their strategy to fight the government.
Pakistani forces have made gains against the militants in an offensive in the Swat valley, northwest of Islamabad, months after Taliban advances and bomb attacks raised fears for nuclear-armed Pakistan's future and contributed to a slide in investor confidence.
Militant attacks have tapered off in recent weeks after the death of the Pakistani Taliban chief in a missile fired by a U.S. drone aircraft on Aug. 5, but security officials say fighters loyal to al Qaeda and the Taliban are still a serious threat.
