The army had carried out a massive operation in the region in 2009 but militants continue to be active in the area.
The powerful explosion damaged several shops in the market.
No one claimed responsibility for the attack.
Maulvi Abbas Wazir was a confidant of Taliban commander Nek Muhammad, who was killed in a United States drone strike in 2004.
They were both known for sheltering Uzbek, Tajik and other foreign militants.
Maulvi Abbas left South Waziristan after Maulvi Nazir emerged as the top warlord in the region and launched a campaign against foreign militants.
Abbas returned to the region last year after finalising a deal with Nazir, who is considered a "pro-government" commander.
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