Taliban militants in a tribal region bordering Afghanistan say they have pulled out of a peace deal with the government, raising the prospect of wider unrest as the Pakistani army extends its efforts to eliminate insurgents.

The militants in North Waziristan blamed continuing U.S. missile strikes and army offensives against the Taliban for their decision, which was announced in the wake of a Taliban ambush that killed 16 soldiers.

Separately, a car bombing in Pakistan's southwest killed four people Tuesday, police said - a reminder of how insecurity in the country stretches far beyond the northwest regions near Afghanistan.

Government leaders and Taliban representatives reached the North Waziristan deal in February 2008, but few details have been released about it.

U.S. officials have criticized peace deals with militants or tribes representing them in the border region, saying they allow the insurgents to gain strength.

The agreement in North Waziristan had appeared to keep things relatively peaceful there - calmer than in neighboring South Waziristan, where the army is

preparing for a major offensive aimed at Pakistani Taliban chief Baitullah Mehsud.

The deal was struck with a Taliban faction led by Hafiz Gul Bahadur.

"This accord is being scrapped because of Pakistan's failure to stop the American drone attacks in North and South Waziristan," Bahadur spokesman Ahmadullah Ahmadi said. "Since the army is attacking us in North and South Waziristan, we will also attack them."

Various militant groups operate under the Taliban banner in Pakistan, but do not always see eye to eye. The ending of the peace deal could be a sign of greater unity in the face of a common enemy now that the Pakistani military has stepped up its operations against insurgents.

... contd.