ISLAMABAD - An explosion in the parking lot of a market in the centre of the Pakistani capital on Wednesday caused minor damage at a nearby bank but no casualties.

Police were investigating the source of the blast, which reverberated across Islamabad.

"Something exploded in one of the parking lots of Jinnah Super Market," said police official Munawar Alam. "Nobody is dead or wounded."

Ajmal Gul was near the parking lot when the blast occurred and said he heard a big bang.

"I ran and saw smoke rising from the parking area," said Gul.

Police officers at the scene strung tape around trees to cordon off the area, local television footage showed.

An Associated Press reporter near the scene could see broken glass, branches and leaves littering the parking lot.