Islamabad had denied any camp was struck, but on Tuesday warned India to prepare for a surprise and vowed a "befitting" response at a time and place of its choosing.
In a statement headed "Pakistan strikes back", the foreign ministry said the action was not retaliation " to continued Indian belligerence".
"Pakistan has therefore, taken strikes at non military target, avoiding human loss and collateral damage. Sole purpose being to demonstrate our right, will and capability for self defence.
A spokesman for Pakistan's military said that Indian jets had then crossed the line of control and the Pakistan air forces had gone on to shoot two of them down inside Pakistani airspace.
"One of the aircraft fell inside Azad Jammu and Kashmir, while other fell inside Indian Occupied Kashmir. One Indian pilot arrested by troops on ground while two in the area," said Maj Gen Asif Ghafoor.