The plane crashed at a bus terminal in Yousuf Goth area of Baldia Town in the city during routine training mission, TV news channels reported.
The plane called Mirage was used for training purposes by the PAF and the crash reportedly took place due to a technical failure.
A PAF spokesman confirmed that both pilots flying the training jet had died in the crash, the Dawn reported.
Five civilians were also injured in the incident.
The terminal caught fire but it was controlled by the fire fighters. At least 10 buses were also damaged.
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