Mohammad Akbar was sentenced to death for murdering two soldiers. His conviction was maintained by Peshawar High Court but he challenged the military court verdict in 2016.
A three-judge bench, headed by Justice Ejaz Afzal Khan, heard the appeal and ordered that his sentence would not be implemented till the adjudication of appeal.
He also issued notices to the attorney general and the petitioner's counsel.
Special military courts were set up in 2015 for two years for speedy trail of terrorists. The courts were disbanded on January 7, 2017 but later restored for another two-year term.