The terrorists, some of whom were reportedly wearingmilitary uniforms, sneaked into Kamra airbase at about 2 am on Thursday despitea state of high alert at the facility.
The attackers breached at least three barriers and tried totarget Saab-2000 surveillance aircraft, news channels reported.
Following a gun battle that lasted over three hours, seven terroristswere gunned down by commandos, a PAF spokesman told the media.
He said eight terrorists were involved in the attack.
He was no word on the fate of the remaining attacker.
The spokesman said explosives were strapped to the body ofone attacker. He said the attackers were engaged by two teams of commandos.
The spokesman said one security personnel was killed andseveral others, including base commander Air Commodore Muhammad Azam, wereinjured.
Azam, who was leading the operations, was hit by a bulletbut he is "safe and stable", the spokesman said.
Earlier reports had said two security personnel were killed.
The military's media arm told reporters that the situationat the Kamra airbase was under control and troops were conducting a searchoperation to ascertain if any more terrorists were inside the complex.
The PAF spokesman said one aircraft was damaged when it washit by a rocket-propelled grenade fired by the attackers.
He did not give details of the extent of the damage.
The attack came just two days after Pakistan Army chief GenAshfaq Pervez Kayani reiterated the country's commitment to the war onterrorism.
Amidst speculation about a new campaign against the Talibanin the tribal belt, Kayani said the war on terrorism was Pakistan's "ownwar and a just war too".
The brazen assault was described by experts as a serioussecurity lapse as The Express Tribune newspaper had reported on August 10 thatthe Tehrik-e-Taliban Pakistan could target PAF facilities in Punjab beforeEid-ul-Fitr.
Citing intelligence reports, the daily reported thatmilitants could carry out attacks on the 27th or 28th of the Islamic month ofRamzan or August 16 and 17.
No group claimed responsibility for the attack, the latestin a string of brazen assaults on Pakistan's military installations. In thepast, militants linked to the Pakistani Taliban have attacked the army'sGeneral Headquarters in Rawalpindi and a key naval airbase in Karachi.
Several Western media reports in the past have said thatnuclear weapons are based at the Kamra complex, which is home to an airbase andthe Pakistan Aeronautical Complex that assembles JF-17 combat jets and drones.
As troops conducted a search operation within the airbase,residents of nearby areas were told to remain within their homes. Largecontingents of police and army soldiers cordoned off the area.
Shortly after the attack began, Geo News channel quoted itssources as saying that the attackers could have had help from elements withinthe airbase.
The terrorists reportedly entered the airbase from PindSuleman Makhan, a village adjoining the PAF facility.
The PAF sought help from the army and troops from an eliteanti-terrorism commando unit in the garrison city of Rawalpindi were despatchedto Kamra.
Witnesses told the media they had heard intense firing andseveral explosions from within the airbase.
The Kamra complex and its personnel have been targeted byterrorists several times in the past.
On October 23, 2009, seven persons were killed when asuicide bomber struck a check post outside the airbase.
