A bomb exploded Saturday in Peshawar, the main city of Pakistan's turbulent northwest region, killing at least 10 people and wounding many others.

Officials said the bomb exploded in the city's busy Kashkal area. A passing school bus was also hit in the blast.

Meanwhile, Pakistan is continuing its offensive against the Taliban in the nearby Swat valley.  Nearly one million people have been forced to flee the fighting, as the military claimed major advances.

The military reported Saturday 47 militants had been killed in the past 24 hours of fighting.

Cars and buses full of people streamed out of the area Friday after the government lifted a curfew in the Taliban-ruled town of Mingora.  Many families headed for refugee camps.

A spokeswoman for the United Nations refugee agency, Ariane Rummery, says the large number of displaced people presents a "very grave" humanitarian situation and a challenge for the government.

The army said Friday it had killed 55 Taliban militants in Swat in the previous 24 hours. 

The military urged civilians in the region to help identify Taliban militants who were attempting to disguise themselves by cutting their hair and shaving their beards in order to mingle with refugees escaping the area. 

The violence erupted with the collapse of a ceasefire between the government and Taliban militants who control much of the region.

Pakistan launched an offensive to eliminate the Taliban after the Islamist militants advanced to within 100 kilometers of the capital, Islamabad.

Officials say more than 900,000 people have fled their homes in the last few weeks as the fighting intensified, in addition to another half-million who fled earlier unrest.


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