Islamabad, Dec. 11 (AP): Peace deals between Islamic militants and Pakistan’s government have created a virtual Taliban mini-state near Afghanistan, giving militants a “free hand” to recruit, train and arm for cross-border attacks, a think tank reported today.

The International Crisis Group accused Pakistan President Pervez Musharraf’s government of resorting to “appeasement” of pro-Taliban fighters after poorly planned military operations in North and South Waziristan failed and only fuelled more militancy.

The government denied the allegation, but a US military official in Afghanistan confirmed that cross-border attacks had surged this summer, amid the bloodiest violence since the ouster of the Taliban regime in late 2001.

Close to 4,000 people, mostly militants, have been killed in Afghanistan this year.