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It was the second test firing of the surface-to-surface Hatf VI (Shaheen II) missile, which was earlier tested in March 2005, it said on Saturday.
Prime Minister Shaukat Aziz witnessed the test carried out from an undisclosed location.
"The missile test was conducted to validate additional technical parameters beyond those that were verified in the last test fire in March 2005," a military statement said.
The Hatf VI is Pakistan's longest range ballistic missile system and has the potential to achieve a range of 2,500 kilometers in an advanced version.
"It is a two stage solid fuel missile which can carry nuclear and conventional warheads with high accuracy," the statement said.
Aziz congratulated the scientists, engineers and the technical staff of Pakistan's Strategic Organisation and said the country's strategic programme would "go from strength to strength."
Regional rivals Pakistan and India have routinely conducted missile tests since their tit-for-tat nuclear detonations in May 1998.