A vehicle is on fire after a bomb explosion in Peshawar, Pakistan, 08 Sep 2007

Pakistani police say a car bomb exploded in a parking lot of a bank in the northwestern city of Peshawar Saturday, wounding 12 people.

Authorities say the blast broke windows in the military-owned Askari bank and damaged several nearby businesses and vehicles.

Pakistan is a key ally of the United States in its campaign against terror. In recent years, Peshawar and many other parts of the Islamic nation have been hit by scores of bomb attacks, most blamed on outlawed militant groups.

Bombings have also been frequent since an army operation in July that evicted militants from the radical Red Mosque in Islamabad.

Some information for this report was provided by AFP and AP.