Taliban holds victory rally in Swat Valley - National News Updates

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A day after the Pakistan government agreed to Taliban's demand for enforcing Islamic law in northwest Pakistan in exchange for a ceasefire, the militant outfit on Tuesday staged a rally as show of strength in the Swat region.

Both India and America are deeply worried about Taliban's growing influence in the region.

The Pakistan government agreed on Monday to impose Islamic law and suspend a military offensive across the northwest Pakistan. These concessions are believed to be aimed at pacifying a spreading Taliban insurgency in the area.

The announcement came after talks with local Islamists, including one closely linked to the Taliban.

The move will likely concern the United States, which has warned Pakistan that such peace agreements allow Al-Qaida and Taliban militants operating near the Afghan border time to rearm and regroup.

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