A suspected suicide bomb attack outside the Iranian consulate in the Pakistani city of Peshawar Monday killed two paramilitary soldiers and wounded ten others, officials said.

A suspected suicide bomb attack outside the Iranian consulate in the Pakistani city of Peshawar Monday killed two paramilitary soldiers and wounded ten others, officials said.

The bombing took place in the upmarket University Town area of the northwestern city, where many non-government organizations are also based.

"We have two bodies of paramilitary soldiers and ten wounded have been admitted to hospital," said Farhad Khan, a spokesman for Khyber Teaching Hospital where the casualties were taken.

A senior police official, Mohammad Ejaz Ahmed, said it appeared to be a suicide bombing.

He said other paramilitary soldiers in the area fired in the air in panic after the bombing.

No group has yet claimed responsibility, but the Pakistani Taliban have carried out such attacks in the past.

Earlier this month Pakistan entered into talks with the Taliban aimed at ending their seven-year insurgency.

But the militant group continued carrying out attacks on a near-daily basis, and the dialogue was suspended last week after the insurgents claimed they had executed 23 kidnapped soldiers in a northwestern tribal region.

Since then the air force has been carrying out attacks in the volatile tribal regions which border Afghanistan, killing dozens.