June 25 (Bloomberg) -- Pakistani security forces are undertaking “search and sweep operations” against Taliban insurgents in the northwestern Swat valley, the military said in a statement, amid reports a key militant was killed in the area.

Troops killed Shah Dauran, the Taliban militants’ deputy chief in Swat valley, GEO television reported today, citing unidentified government officials. Dauran ran an FM radio station in Swat broadcasting propaganda against security forces, according to the report, which the military didn’t confirm.

The military said this week the operation in Swat was in its final stages as it prepares an offensive against Pakistani Taliban commander Baitullah Mehsud in his stronghold in the tribal zone of South Waziristan, bordering Afghanistan.

The U.S. says al-Qaeda fighters also shelter and plot attacks on the West from this tribal region. U.S. analysts say Mehsud commands as many as 5,000 fighters.

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

The eight-week offensive against the Taliban in Swat Valley has forced about 2 million people to leave their homes and live in temporary camps. The military says it has killed about 1,600 militants during the assault.

Access to the internally displaced people is critical, according to a statement released by the United Nations today in Islamabad. “Gaining access to all of the people in need of humanitarian assistance is a formidable and complex challenge,” it said.

Gilani Plea

Pakistani Prime Minister Syed Yousuf Raza Gilani said the world’s aid to help fight the Taliban and provide relief to refugees isn’t enough. Gilani expressed his “disappointment” in a statement after meeting U.S. National Security Adviser James Jones.

In the meeting, the prime minister asked the U.S. to write off Pakistan’s debt to help make up for losses as a result of fighting terrorism, according to the statement.

Troops moved into Swat and neighboring districts when the Taliban advanced to within 100 kilometers (62 miles) of Islamabad, violating an accord to end fighting in return for the government placing the region under Islamic law.

Suspected U.S. drones two days ago fired missiles during the funeral of a militant commander in South Waziristan, located in the tribal belt, killing 80 people, the Dawn newspaper said, citing residents. Mehsud narrowly escaped, leaving moments before the attack that killed 30 militants, the newspaper said.

Pakistan’s Foreign Office, reacting to the missile strikes, said the government is in regular contact with the U.S. and has conveyed its concerns over the strikes.

“It has been Pakistan’s consistent position that the drone attacks are a violation of Pakistan’s sovereignty and must be stopped,” according to a statement yesterday, citing spokesman Abdul Basit.

To contact the reporter on this story: Khalid Qayum in Islamabad at kqayum@bloomberg.net.

Last Updated: June 25, 2009 07:22 EDT