The bomb was placed at Green Belt, Gulshan-e-Hadeed area, police said.
The remote controlled device exploded when a car carrying the Chinese citizen crossed by, SSP Malir said.
The injured have been shifted to a hospital.
Pamphlets with threats written on them were recovered from the site of the attack, police said.
Hundreds of Chinese nationals are working on development projects including the China-Paksitan Economic Corridor (CPEC) in Sindh and Balochistan.
An eyewitness told mediathat he had informed the police of a suspicious package he had found lying on the road. But the police did not pay heed, he said.
Police conducted a search operation in the area after the attack. Three suspects were arrested and weapons were recovered, police said.
Responsibility for the attack was claimed by a lesser known group Sindhu Desh Liberation Army, SSP Rao Anwar said.
He added that this group plants IED bombs on railway tracks on August 14, Pakistan’s independence day.
Dec 16, 2017 0
The 68th Anniversary of the Founding of the People’s Republic of China.
— The Daily Mail - People's Daily