The F-7 aircraft went down near the town of Jamrud, near the entrance to the Khyber Pass, and Flight Lieutenant Amer Shazad was killed, the air force said in a statement.
The military has set up an investigation into the cause of the crash, which it said caused no civilian injuries on the ground, Reuters reported.
Pakistan's armed forces have had several air accidents in the past 18 months, including a crash that killed female jet pilot in another training exercise in November.
In May 2015, a military helicopter carrying diplomats to inspect a tourism project crashed, killing seven people, including the ambassadors of Norway and Philippines.
Another military helicopter being used as an air ambulance crashed in August 2015 near the northern district of Mansehra, killing 12 people.