However, Rehman Malik, the interior minster, implied on Monday that talks with the Taliban are being watched very closely and that the government is losing patience with them due to continued attacks in the region.
Kamal Hyder, Al Jazeera's correspondent in Islamabad, had earlier quoted Malik as saying that escalating violence against government forces meant there was no point in continuing with the deal signed last month.
"The interior minister, in spite of the fact that he has refuted those reports, has admitted that there has been an escalation," Hyder said, "and that if the government did lose its patience and the militants in that area did not stop their activities then the deal would be off."
Hyder said that the government was talking from a position of strength having fortified positions and moved the military into the Swat valley.
"The government's contention is that as long as those people do not allow the government to re-establish its power over the entire region, then they will not give in to any of their [the Taliban's] demands.
'Warning shot'
"Many analysts are looking at this as a warning shot by the government to the Taliban, saying to them that the challenge to the government is unacceptable," Hyder said.
Hyder said that there are elements within the Taliban who are averse to peace with the government and are attempting to sabotage any dialogue between the two sides.
Pakistan's government had promised to pull out troops from the northwestern valley of Swat after signing the peace agreement.
In return the Taliban was expected to shut training camps, hand over foreign fighters and halt suicide attacks on government installations and security forces under the 15-point pact.
Located about 90km from the Afghan border, Swat, which is tribal, though not a part of the Federally Administered Tribal Areas (Fata), had been the main tourist destination in North Western Frontier Province (NWFP) until last year.
Pro-Taliban fighters then launched a violent campaign to enforce Taliban-style law in the region.
12:08 PM
