Police sources said that it was a suicide attack which targeted the vehicle of DPO Chaman Sajid Khan Mohmand on Boghra Road.
The injured, which mostly include police personnel, are being shifted to nearby civil hospital.
Sajid Mohmand succumbed to his injuries on the way to the hospital. As per initial reports, 10-15 people including police personnel have also been injured in the incident.
Security forces and rescue team rushed to the site immediately following the report of the blast.
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The Pakistani Taliban swiftly claimed responsibly for the attack in the town of Chaman near the Afghan border, saying the bomber was one of its members.
Police and law enforcement agencies have surrounded the area to trace the miscreants involved in the terrorist attack.
Interior minister Chaudhry Nisar and Balochistan home minister Mir Sarfaraz Ahmed Bugti also condemned the attack.
The border crossing between the town of Chaman and Spin Boldak is the second most important crossing on the Afghan-Pakistani border.