An Army statement says the missile was fired on Friday.
It says the missile, named Hatf-7, has been developed in Pakistan and has a range of 440 miles (700 kilometres) that can hit targets in India.
Pakistan routinely tests such missiles which are mainly designed to match those of nuclear-armed neighbouring archrival India.
The two countries have fought three wars since gaining independence from Britain in 1947.
The test of the "indigenously developed multi-tube" cruise missile system was successful, said a statement issued by the military.
The test was witnessed by Chairman Joint Chief of Staff Committee Khalid Shameem Wyne.
Pakistan’s President Asif Ali Zardari and Prime Minister Yusuf Raza Gilani congratulated the scientists and engineers on their achievement. The military statement said a special feature of today's test was the "validation of a new multi-tube missile launch vehicle".
Apart from Gen Wyne, those who witnessed the launch included Director General Strategic Plans Division, Lt Gen (Retd) Khalid Ahmed Kidwai; Commander Army Strategic Force Command, Lt Gen Tariq Nadeem Gilani; and Chairman National Engineering and Scientific Commission (NESCOM) Muhammad Irfan Burney.
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