The Boeing 737 was carrying around 127 passengers from Karachi and was destined for Islamabad, according to initial reports by Civil Aviation Authority (CAA.)
Witnesses close to the Bahria Town residential complex near the airport say emergency vehicles can be seen in the area.
A violent rain and wind storm was lashing parts of the capital around the same time as the crash, said an aviation official, adding lightening might have caused the plane to catch fire.
An airport source said that flight number B4-213 of Bhoja Airline was due to land at Islamabad airport at 6:50 pm (1350 GMT) but lost contact with the control tower at 6:40 pm and crashed shortly afterwards before reaching the runway.
Source: Dawn News