Stepping up their offensive, Pakistani troops smashed through Taliban defences and captured two key towns of Bahrain and Peochar in Swat valley on Friday after fierce battles which left 28 militants dead.
Security forces also arrested 39 Taliban fighters who were hiding among refugees in displaced camps during scrutiny and screening operations.
Supported by heavy artillery, troops moving in armoured personnel carriers stormed into the Peochar town to link up with Army commandos dropped behind Taliban lines earlier this month and claimed that the mountainous city, being used by militants as training centre, had been cleared.
"Security forces continued with cordon and search operation and successfully cleared the stronghold of militants at Peochar village," a military statement said.
"In last 24 hours, 28 terrorist were killed and seven were captured in various areas of Swat during exchange of fire with security forces, while five soldiers and two civilians were injured," it said.
But, for Bahrain town located in the northern most area of the Swat, Army had to overcome stiff resistance from Taliban before they fought their way into the town where nine militants were killed.
Despite making claims that it would clear Taliban fighters from Mingora, Swat's main town in 2-3 days, the Army appeared to have been bogged down by heavy street fighting, which involved house-to-house battles.
An Army official said the pace of advance was slow as troops had to search every area they came across for booby traps and IEDs. But he said 70 per cent of the town had been cleared.
Taliban ambushed an army ration convoy moving up to Mingora near Barri Kot killing four soldiers. Army had also to fight pitched battles before it overwhelmed Taliban defences in Peochar.
Peochar is the home village of Commander of the Taliban forces in Swat Maulana Fazlullah, around whose fate confusion continues to prevail.
A provincial minister had said that Fazlullah has been killed in battle, but there was no word from the Army. But, the authorities today raised the bounty on his head from 5 million to 50 million rupees indicating that the Taliban commander also known as 'Mullah Radio' was still on the prowl.
Some of the heaviest fighting was reported near the northern Swat town of Bahrain where security forces said they had entered the town after smashing through Taliban pickets.
Nine militants were killed in the battle which also left two soldiers and two civilians wounded.
From the town, army recovered 12 vehicles of the United Nations reportedly commanded by the Taliban and destroyed their numerous hideouts including their religious seminary, which had a vast network of escaped tunnels.