Raja Farooq Haider, the elected leader of Pakistani Kashmir, confirmed the news of the explosion.
"The bomb blast took place in an army area. The authorities are on site. We have taken the injured to the nearby Rawla Kot hospital," he told Geo.
"Police and experts are investigating whether it was a suicide blast or a planted bomb."
Speaking from the nearby town of Pallandri, Irfan Masaood Kishvi, a senior police officer, told the AFP news agency: "It was a bomb blast. It could be a suicide blast, but we are collecting the evidence.
"It was outside the army barracks ... . Three security personnel have been martyred and three wounded. The injured have been taken to the Combined Military Hospital."