A moderate earthquake rattled Jammu and Kashmir [Images] early on Friday morning, sending people rushing out of their homes in panic.

The quake, which occurred at 8.49 am, had its epicenter at Baramulla in Jammu and Kashmir, said Chaudhry Qamar-uz-Zaman, director general of the metrological office.

The temblor jolted Islamabad [Images], Lahore [Images], Peshawar, Mansehra, Abbotabad, Sialkot, Neelum Valley, Chakothi, Rawalpindi, Jehlum, Muzzafarabad and other areas.

Two children were reportedly injured. There were also reports of some houses collapsing in Pakistan-occupied Kashmir and a newly constructed government school was partially damaged in Muzzafarabad.

The United States Geological Survey measured the tremor at 5.8 on the Richter scale and put its epicentre 26 km beneath the earth's surface.

With additional inputs from PTI