Eighteen people were killed when a small military plane crashed into a residential area in the Pakistani city of Rawalpindi early Tuesday, officials told AFP.

The plane crashed into a poor village near an upscale neighborhood in the garrison city that is home to the army's headquarters, creating a fireball that lit up the night sky and terrified residents.

"We have taken 18 dead bodies to hospital... that included 13 civilians and five crew members," said local rescue spokesman Farooq Butt, adding that a further 12 people had been injured in the accident near the capital Islamabad.

"All the bodies are badly burned, so DNA tests are required for identification," he added. 

One resident told AFP that the crash happened around 2 am. "I woke to the sound of a huge explosion. I stepped out of my house and saw huge flames and we rushed to the site," said Mohammad Sadiq.  

The military's information wing said the plane was on a routine training mission when the accident occurred, adding that rescue officials had extinguished the fire caused by the crash and moved the injured to a local hospital.

Hours after the crash rescue workers could be seen combing through the smouldering site, gathering debris and inspecting the scene while ambulances swarmed the area.

Military officers had also cordoned off the crash site. 

Prime Minister Imran Khan offered his condolences to the affected families and wished a "quick recovery for the injured," according to a tweet by the Pakistani government.