Principal Sessions Judge Jang Bhadur Singh Jamwal awarded the term to Noor Ahmed Baloch and imposed a fine of Rs 10,000 on him.
Baloch, a resident of Chak Zahir Peer in Khanpur (Pakistan), was arrested in Doda district on October 26, 2004, where he was operating as a Hizb Area Commander.
On the day, police recovered a Chinese-made pistol among other things from his possession.
The court convicted Baloch under Arms Act and Foreign Act and sentenced him to jail terms of seven years and two years respectively. He was also slapped a total fine of Rs 10,000.
Both the jail terms will run concurrently.
Codenamed as Rashid, Baloch had obtained militant training in PoK and was operating in Doda hills in the state.