Few hours after the first blast a second explosion was heard in Lahore's Gulberg, according to ANI.
Law enforcement personnel have cordoned off the market and a search operation is underway.
Punjab Law Minister Rana Sanaullah said that there was no reason to target the building as he was informed that the plaza was not inaugurated yet.
The two blasts come after a recent wave of terror attacks in Pakistan had claimed more than 100 lives.
@GovtOfPunjab @defencepk I was there.... doesn't look like generator blast at all..I am safe as ws in a shoe shop!Don't hide truth 4m nation
— FarkhundaAkhtar (@FarkhundaKhan) February 23, 2017
Clarification on Lahore Y block blast: It's a generator blast and rescue team has reached the site. Please spread this.
— Govt Of The Punjab (@GovtOfPunjab) February 23, 2017