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The bus travelling from the garrison city of Rawalpindi to the frontier town of Forward Kahuta, fell down the 150 metre (500 foot) slope early in the morning.
Senior local police official Riaz Abbasi told AFP that around 20 people were on board. He said 10 had been killed and four were injured.
A senior government official also confirmed the incident.
“The accident occurred around 5:00 am. We have moved the injured to hospitals and handed over dead bodies to the relatives,” local administration official Sardar Shahbaz Ali said.
The officials said the cause of accident was not immediately known.
Pakistan has a poor record for fatal traffic accidents, with poorly maintained roads and vehicles and reckless driving often the cause.
The narrow, twisting roads in mountainous Kashmir are particularly hazardous.
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