Pakistan on Thursday test-fired its 1,300 km range nuclear-capable ballistic missile Hatf V, a day after it reached an agreement with India on nuclear risk reduction.

The Hatf V missile, which is also known as Ghauri, is capable of targeting several Indian cities.

"The launch of the medium-range missile was carried out by troops of the Army Strategic Forces Command at the culmination phase of a training exercise held to test the operation readiness of a Strategic Missile Group equipped with Ghauri missile," the Pakistan Defence Ministry said in a statement in Islamabad.

The test of the missile was conducted to check its technical parameters. The missile had been handed over to the ASFC two years ago.

Officials in Islamabad said India has been informed about the test.

The test came a day after foreign secretaries of the two sides reached an agreement on nuclear risk reduction.

During the talks in New Delhi on Wednesday, the two countries initialled the agreement on reducing the risk from accidents relating to nuclear weapons.

After the launch of the missile, Pakistan Prime Mininster Shaukat Aziz congratulated military officials for the "high standards" achieved during the "successful launch and the accuracy of the missile in reaching the target".

He said Pakistan can be justifiably proud of its defence capability and the reliability of its nuclear deterrence.

"Pakistan believes in peace that comes from a position of strength and operational readiness. The defence of the country is non-negotiable," he said adding, "Pakistan's nuclear capability has matured and was consolidated as a fully operationalised capability in the last seven years."

The three services had raised effective strategic forces to handle the nation's nuclear capability in all dimensions and were equipped to handle the strategic assets in the field.

The National Command Authority and the Strategic Plans Division, which oversaw Pakistan's Strategic Programme, were fully alive to the regional security situation and had developed adequate response options to meet any contingency, he said.