The French-made fighter jet took off from Masroor Base and crashed during flight at Musharraf colony, about 16 km from here, a Pakistan Air Force (PAF) spokesman said.
The pilot was killed while trying to steer away the aircraft from residential localities, he said.
"The flight was on a routine training mission when it crashed. Orders have been issued for an inquiry into the crash," he said.
Police said the aircraft crashed near Musharraf colony which is close to the Masroor airbase in Karachi.
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Rescue teams have reached the site of the crash.
In September, a PAF fighter jet had crashed and its pilot killed in the country's northwestern Khyber agency bordering Afghanistan.
Last year, a double-seat version of F-7PG PAF fighter jet, which was on a routine training mission, caught fire and crashed near Mastung district of Balochistan province.