"The missile test is part of a continuous process of validating the design parameters set for this weapon system," the statement said.

It said President Pervez Musharraf and Prime Minister Shaukat Aziz congratulated the scientists and engineers "on this very important success."

"The Babur, which has near stealth capabilities, is a low flying, terrain hugging missile with high maneuverability, pinpoint accuracy and radar avoidance features," the statement said.

"The test will consolidate Pakistan's strategic capability and strengthen national security."

Pakistan and India have routinely conducted missile tests since the nuclear-armed South Asian rivals carried out tit-for-tat nuclear detonations in May 1998.

However in 2004 they launched a slow-moving peace process aimed at ending six decades of hostility and resolving their dispute over the Himalayan territory of Kashmir, the cause of two of their three wars.

In February, Pakistan signed a historic deal with India to cut the risk of atomic weapons accidents.

Pakistan did not say if it had informed New Delhi in advance about the latest test. They have an agreement to notify each other about tests of ballistic missiles but not cruise missiles.

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