Officials on Thursday said over 20 people were killed when a truck exploded on a street between an Afghan spy agency building and a hospital in the capital of the southern Zabul province.
Provincial councillors, Asadullah Kakar and Ata Jan Haqbayan, said at least 93 others were wounded in the incident, some 30 of them in critical conditions.
According to Kakar,the provincial hospital was largely destroyed in the incident and is out of operation for now.
The officials added that wounded people were taken to private hospitals in the city, as well as to the neighbouring Kandahar province.
A Taliban spokesman, Qari Ahmadi, said the reason that the hospital and civilians were targeted in the incident was that the enemy had taken refuge among civilians.
The Afghan Ministry of Defence said in a statement that it would take revenge on Taliban militants for the attack.
The Taliban have maintained a heavy presence in many parts of the province for years, according to the officials.
Following the recent cancellation of U.S.-Taliban talks, the Islamist group has escalated its complex attacks across various cities, including the capital city of Kabul.