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Residents of Rashkai area in Nowshera district said the aircraft collided before crashing and the fate of the pilots was not immediately known.
One of the aircraft plunged into a house and triggered a fire. Witnesses and television reporters said they had seen debris from the aircraft strewn over a large area.
Local residents took injured persons to a nearby hospital, police and witnesses said. The accident occurred close to the Pakistan Air Force Academy at Risalpur shortly after 10 am.