Mr Smith who is on a three-day visit to Pakistan, flew by helicopter from Pakistan's capital Islamabad to the northern city of Peshawar and on to the Khyber Pass.

There he was briefed by Pakistani military and security officials on their efforts to suppress the Taliban and members of the al-Qaeda terrorist network.

In a subsequent press conference with Pakistan Foreign Minister Shah Mahmood Qureshi, Mr Smith highlighted plans to step up defence cooperation between Australia and Pakistan and sign agreements on cooperation between the Australian Federal Police and Pakistani police and anti-narcotics agencies.

Mr Smith said he discussed the situation in Afghanistan with Mr Qureshi and added that the Australian Government saw its military effort there as being ''about right''.

He said Australia had not yet received any request from the new United States Administration of President Barack Obama to increase its commitment in Afghanistan where, with 1100 troops deployed, Australia's contingent is the largest contribution from a non-North Atlantic Treaty Organisation nation. ''If we do receive a request for enhanced military contribution, we certainly wouldn't want our contribution to be seen as an excuse for others to not make a comparable contribution or to reduce their contribution,'' he said.

Mr Smith's visit to Islamabad coincided with comments by the US special representative to Pakistan and Afghanistan, Richard Holbrooke, who, while in New Delhi, described the Pakistan Government's loss of control of the Swat Valley, a former tourist region just three hours drive from Islamabad, to Taliban militants as ''terrifying''.

''What has happened in Swat demonstrates that India, the US and Pakistan all have a common threat. It is the first time in 60 years, since independence, that [India], Pakistan and the US all face an enemy which poses a direct threat to our capitals, our leadership and our people,'' Mr Holbrooke said.

Islamist militants have waged a year-long campaign in Swat, killing local leaders, closing schools and forcing an exodus of refugees.