The test of the Hatf-4, also known as Shaheen-1A, was conducted successfully, the State-run Radio Pakistan reported.
The missile tested today was 'an improved version of Shaheen-1 with improvements in range and technical parameters', the report said.
The military did not specify the range of the missile though the original version of the Hatf-4 had a reach of 750 km.
The missile, capable of carrying nuclear and conventional warheads, can reach targets deep within India.
The impact point of the missile was in the Indian Ocean, reports said.
Pakistan had informed India in advance about the test and asked it to issue suitable warnings to aircraft flying over the region.
Pakistan President Asif Ali Zardari and Prime Minister Yousuf Raza Gilani have congratulated their scientists and military officials over the successful test of the Hatf-4.
