The Hatf-2 ballistic missile can travel up to 180 km (110 miles).
The surface-to-surface missile has capacity to carry traditional atomic warhead.
"Hatf-2 can carry nuclear as well as conventional warheads with high accuracy," the military said in a statement, adding the test had been successful.
The missile was launched from an undisclosed location. It was the second such test by Pakistan in the past month.
Also, the test came days after India conducted successful launch of an interceptor missile.
Pakistan carried out nuclear tests in May 1998 just days after similar tests by its old rival India.
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