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The attack, in Afghanistan’s capital, took place on Tuesday at around 9.45 am local time, with witnesses saying the "very loud" blast hit the busy Puli Mahmood Khan area before gunfire was exchanged between jihadists and security forces.

The pattern follows similar major attacks, where an initial bombing is followed by close range shoot outs with security forces.

The intended target was Afghanistan's national security agency, close to the US embassy.

The final total is more the double the original amount estimated by the police.

The Taliban said they had carried out the suicide bombing on "Department 10", an National Directorate of Security unit, which is responsible for protecting government ministers and VIPs.

A spokesman said of the first attack: “First a suicide bomber blew up his explosives-laden lorry on the gate of the department and then other armed attackers went in and started shooting on the rest of the enemies."

The blast shattered windows up to 1.6km (one mile) away, according to reports.

A thick plume of black smoke could be seen near the American Embassy, which was not hit by the attack which left 347 people injured, a figure which has also climbed.

A large explosion was heard in central Kabul several hours later.