Forex

Militants in north-west Pakistan have burned down much of a hotel in the country's only ski resort, police say.

The night time attack follows sporadic clashes this week between militants and security forces and arson attacks on several girls' schools.

The Swat valley fire came hours after the prime minister and military agreed a broad outline to counter the threat of Islamist militancy.

The meeting was also attended by politicians and intelligence chiefs.

'Deteriorating'

Officials say that the authorities had not been able to get to the resort to tackle the blaze or inspect the damage.

"The area is not under our control, it's under the militants' control and no one can go there," Swat's police chief, Waqif Khan, told the Reuters news agency.

Map Swat

The attack on the government-run hotel happened at Malam Jabba in Swat valley, where militants signed a peace deal with Pakistani authorities in May after months of clashes.

The BBC's Barbara Plett in Islamabad says that the security situation in Swat has been deteriorating despite the one-month peace agreement between the government and a radical pro-Taleban cleric.

The Taleban had suspended contact with the authorities because of differences over implementing the deal but have agreed to return to talks expected to be held on Thursday.

The ski resort shut down last August when militants took over Swat.

With the recent peace accord, our correspondent says that there had been hope for a revival of the tourism industry