June 24 (Bloomberg) -- Pakistan said its battle to defeat terrorism is being harmed by U.S. drone attacks after a strike yesterday near the border with Afghanistan reportedly killed at least 50 people.

Such attacks are “counterproductive” and should be condemned, the state-run Associated Press of Pakistan cited Syed Samsam Ali Bukhari, the minister of state for information and broadcasting, as saying. The raids may also affect Pakistan’s relations with the U.S., he said.

Yesterday’s strike took place in South Waziristan where Pakistan’s army is preparing an offensive against Taliban commander Baitullah Mehsud. Missiles struck a procession at the funeral of an associate of Mehsud, the Dawn newspaper reported, without saying where it obtained the information.

The U.S. has repeatedly called on Pakistan to take steps to tackle Taliban and al-Qaeda fighters operating in the tribal region. President Barack Obama has said an aid package to Pakistan worth $1.5 billion a year is conditional on the government tackling extremists.

Pakistan says the deaths of civilians in drone attacks harm efforts to combat militants in the Federally Administered Tribal Areas through a strategy of social and political development and the selective use of military force.

The military turned its attention to South Waziristan as it completes an offensive that began in April to drive Taliban fighters from the Swat Valley in North West Frontier Province, north of the tribal region.

Leaders Targeted

Mehsud commands as many as 5,000 fighters, according to U.S. military analysts. There were unconfirmed reports he was attending the funeral in the Lataka area yesterday when the drone attack took place, Dawn said. An Afghan commander of the Tehrik-e-Taliban Pakistan group was also targeted while he held a meeting with commanders after the funeral, it said.

Mehsud formed Tehrik-e-Taliban Pakistan from an alliance of about five pro-Taliban groups in December 2007, according to the U.S. Military Academy’s Combating Terrorism Center at West Point. The U.S. says he has carried out attacks on American troops in Afghanistan, and is offering a $5 million reward for his capture.

About 45,000 people have fled areas of South Waziristan as the army prepares its offensive, the military said in a statement yesterday.

An estimated 2 million civilians are displaced after fleeing fighting in the Swat region.

The offensive began after the Taliban advanced to within 100 kilometers (62 miles) of the capital, Islamabad, violating an accord to end fighting in return for the government placing the region under Islamic law.

The military says more than 1,500 militants have been killed since the offensive began on April 26.

To contact the reporters on this story: Paul Tighe in Sydney at ptighe@bloomberg.net; Khalid Qayum in Islamabad at kqayum@bloomberg.net.

Last Updated: June 23, 2009 21:07 EDT