Lahore, Apr 15 : Pakistan's peace deal with the Taliban in Swat despite strong objections from the United States may heighten tensions between the two countries, and may lead to an expansion of drone strikes inside the Tribal Areas, Stratfor, the US private intelligence agency, has said.

Stratfor said the Obama Administration could even move to expand its unilateral air strikes in the Tribal Areas bordering Afghanistan, which is considered as a safe haven for al Qaeda and Taliban militants.

"Not only will Pakistan see greater domestic turmoil as a result of the passage of this law, but the new regulation will further aggravate tensions between Islamabad and Washington, complicating Western efforts to combat the Taliban insurgency in Afghanistan," a Stratfor commentary warned.

"The United States may even move to expand its unilateral air strikes and covert operations deeper into Pakistani territory," it said, arguing that the ratification of the deal amounted to converting the Swat Valley into a Taliban territory.

"The Nizam-e-Adl Regulation becoming law without the militants laying down their arms is thus far the most significant example of the Pakistani state's retreat in the face of a powerful insurgency," the Daily Times quoted Stratfor, as saying.

"It underscores the extent to which the state has been weakened and the degree of incoherence within both the state and society regarding the jihadist threat and how to combat it." (ANI)