THE army and the Taliban are blaming each other for a rise in tensions that threatens to destroy a much-criticised peace deal, ahead of the Pakistani president's trip this week to Washington for talks with President Barack Obama.

The army accused militants in the Swat Valley of looting, attacking infrastructure and killing one soldier.

A Taliban spokesman said militants will start patrolling Swat's main town, and acknowledged that they cut the throats of two soldiers as revenge for the army killing two insurgents.

What happens to the peace pact is likely to figure prominently in talks between Pakistani president Asif Ali Zardari and Mr Obama. Mr Zardari is expected to ask for more money to help Pakistan's battered economy and under-equipped security forces.

Under a peace deal, the government agreed to impose Islamic law in the area hoping militants would lay down arms.