Director General of the Inter-Services Public Relations (ISPR), Pakistan army's media wing, Major General Asif Ghafoor said one of the aircraft fell inside Pakistan-administred Kashmir while the other fell inside Indian-controlled Kashmir. The captured pilot was shown bound and blindfolded in the brief video and had facial injuries.
One of the planes crashed in Pakistan's part of Kashmir and the other went down in Indian-controlled Kashmir.
But Indian air force spokesman Anupam Banerjee in New Delhi said he had no information on Pakistan's statement.
Repeated called to a spokesman for India's defense ministry went unanswered on Wednesday.
Both countries agree that Indian jets made it to within at least a few miles of Balakot, a small city about five miles inside Pakistani territory.
The dramatic escalation came hours after Pakistan said mortar shells fired by Indian troops from across the frontier dividing the two sectors of Kashmir killed six civilians and wounded several others.
Pakistan's permanent envoy to the United Nations Maleeha Lodhi has has told the UN officials that as a victim of aggression, Pakistan will respond to India at a time and place of its choosing. The craft initially reported to be a plane appears to be a Mi17 military helicopter according to a partial tail number seen by Reuters.
The cause of the crash is unknown.
U.S. Secretary of State Mike Pompeo called the foreign ministers of both countries on Wednesday. That year also saw an Indian fighter jet shoot down a Pakistani naval aircraft, killing all 16 on board. The Indian stock market was down around 0.5 percent.
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Pakistan's military spokesman, Maj.
Pakistan's military says two Indian pilots were captured after their planes were shot down over Pakistani airspace. "What he said during his concluding statement, he reiterated here, and he said that we would cooperate on eradicating the breeding grounds of terrorism".
A senior Indian official told the Guardian the Pakistani jets were likely to have struck three evacuated villages, Nadian, Lam and Jhangar, in the border district of Rajouri shortly after 10.30am.
People living along the de facto border have been asked to leave their homes.
On Wednesday, security forces killed two Jaish militants in a gun battle, Indian police said. India and Pakistan have fought three major wars since partition and independence in 1947. In addition, India claimed to have evidence proving that the Pakistani military and intelligence agencies could be behind the attack.
Ghafoor, the Pakistani military spokesman, said the strikes were aimed at "avoiding human loss and collateral damage".
Pakistan's Prime Minister Imran Khan urged India to engage in talks to de-escalate tensions. The airport will be used for military purposes till it is reopened for commercial activities, the official said, adding that a red alert had also been issued.
The flight monitoring group Flight Radar says worldwide flights are also avoiding the area. On Wednesday New Zealand's foreign minister Winston Peters also voiced concern over the escalation in tensions.
Post the IAF strike, the Pakistan army warned India saying "It is your turn now to wait and get ready for our surprise".
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