Tariq Burki, director the city’s Lady Reading Hospital, had earlier said four of the seven people dead from the bomb blast were children, but later said four children were wounded and all those killed were adults. He added five of the 83 people wounded in the explosion are in a critical condition. The hospital released a list which showed more than a dozen to those wounded are from Afghanistan.
Nobody has yet claimed responsibility for the bomb in the northwestern city, near the border with Afghanistan.
A police officer, who declined to be identified, said: “Unknown people planted explosives in a plastic bag.”
A video shared by police showed Sheikh Rahimullah, the Jamia Zubairia madrassa’s religious scholar, addressing students in the main hall.
The huge explosion then ripped through the hall as he was citing religious texts on the importance of education.
A hospital source said the religious scholar had survived the blast but was receiving treatment in hospital.
Police officer Waqar Azim inquiry indicated that the blast occurred moments after a bag was left at the madrassa.
He told AFP: “The blast took place in a seminary during a Koran class.
“Someone took a bag inside the seminary.”
Peshawar police chief Mohammad Ali Gandapur told Reuters the bomb contained up to 6kg (13lb) of explosives.
The madrassa is predominantly for adult students, many of whom were studying when the explosion happened.
City resident Abdul Rahim, who said his 27-year old cousin was among the wounded, said: “He told us they were attending a class when the blast took place.”
Pakistan Prime Minister Imran Khan sent his condolences to family members of the victims and the injured.
He wrote on Twitter: “I want to assure my nation we will ensure the terrorists responsible for this cowardly barbaric attack are brought to justice ASAP.”
Militant violence in the city and throughout Pakistan has fallen over recent years.
But there has been an increase in attacks on the security forces over recent months in Khyber Pakhtunkhwa province, of which Peshawar is the capital.
The Pakistani Taliban have previously claimed responsibility for some of the previous attacks.
But the militant group has released a statement condemning the latest explosion and denying any involvement.