A man rushes an injured baby to a Peshawar hospital after the bomb blast on Wednesday. (AP)

Peshawar, Oct. 28 (Agencies): A car bomb ripped through a crowded market in Peshawar killing 95 people, just hours after Hillary Clinton arrived pledging a fresh start in sometimes strained relations.

The bombing, the latest urban attack since the army launched a major assault on Taliban strongholds in South Waziristan two weeks ago, was the deadliest since 2007 when around 140 died at a procession to welcome home former Prime Minister Benazir Bhutto, who was assassinated just weeks later.

The bomb, which was packed with 150kg of explosives. went off in the busy Peepal Mandi market street in a city that for years served as the headquarters of the Pakistan- and US- backed mujahideen war against the Soviet Union’s occupation of Afghanistan.

Officials feared the toll could rise as many people were still trapped under the rubble of collapsed buildings. They said that many of the dead and injured were women and children as the Meena Bazar, which bore the brunt of the attack, was a market meant only for women. Shops selling bangles, toys and dresses were destroyed.

Sahib Gul, a doctor at a nearby hospital, said 95 people were killed and more than 200 injured. He said 60 of the dead were either women or children.

Although nobody claimed responsibility, suspicion immediately fell on Pakistani Taliban militants who are the target of the army offensive.

Hours after the blast, visiting secretary of state Clinton told a news conference that Washington fully supported Pakistan’s battle. “I want you to know that this fight is not Pakistan’s alone,” she said.

“So this is our struggle as well and we commend the Pakistani military for their courageous fight and we commit to stand shoulder to shoulder with the Pakistani people in your fight for peace and security.” The blast collapsed buildings, including a mosque, and set scores of shops ablaze.

The wounded sat amid burning debris and parts of bodies as a huge plume of grey smoke rose above the city.

Crying for help, men tried to pull survivors from beneath the wreckage. One man carried away a baby with a bloody face and a group of men rescued a young boy covered in dust, but others found only bodies of the dead. A two-storey building collapsed as firefighters doused it with water, triggering more panic.

“There was a deafening sound and I was like a blind man for a few minutes,” said Mohammad Usman, who was wounded in the shoulder. “I heard women and children crying and started to help others. There was the smell of human flesh in the air.”

Clinton in Islamabad. (AFP)

Peshawar, the economic hub of the northwest and the seat of the provincial government, has long been a favourite target of militants who control large parts of territory to the north in tribal regions near the Afghanistan border.

Three bombs have exploded in Peshawar this month, including one that killed more than 50 people. They are part of at least 10 major attacks in Pakistan that have killed 250 people either claimed by or blamed on Taliban militants.

Most have targeted security forces, but some bombs have gone off in public places, apparently to expose the weakness of the government.

In the latest fighting in the Waziristan offensive, the military said it had killed 25 militants and captured several training centres and arms caches — including some hidden in caves.

The army says 264 militants and 33 soldiers have been killed since the offensive started. Independent verification is difficult as foreign reporters are barred from the area and it is dangerous even for Pakistani media.