The deceased have been identified as Manju Basnet, 42, and Sunil Shrestha, 25, of Dakshinkali municipality-5.
The accident took place when a passenger bus (Ba 2 Kha 9999) heading towards Ratna Park from Parphing met with an accident at Bhanjyang.
Basnet and Shrestha died on the way to Bayodha Hospital, said Spokesperson of the Metropolitan Traffic Police Division, Umesh Ranjitkar.
Similarly, the injured are receiving treatment at different hospitals of Kathmandu Valley. Police have arrested the bus driver and impounded the vehicle.
Traffic along the Pharping-Kathmandu road section has now been obstructed following the accident.