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Yasir Iqbal, a local deputy commissioner, said that the attack took place in Balochistan province's Khuzdar district when the bus was taking children to the school.
Though no group immediately claimed responsibility for the blast, suspicion is expected to be on ethnic Baloch separatists who often target security forces and civilians in the region, the report added.
Pakistan's interior minister Mohsin Naqvi expressed strong condemnation for the attack and condoled the deaths of the children.
Describing the perpetrators as "beasts" who deserve no leniency, Naqvi said that the enemy had committed an act of "sheer barbarism by targeting innocent children".