Pakistan's government "abdicated" to the Taliban by agreeing to Islamic law in part of the country, according to the US Secretary of State.
Hillary Clinton added that the nuclear-armed nation posed a "mortal threat to the security and safety" of America and the rest of the world.
Pakistan's President Asif Ali Zardari, under pressure from conservatives, signed a regulation earlier this month which imposed Sharia law in the Swat Valley.
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In exchange, the Taliban agreed to a "permanent ceasefire" in the region, once one of the country's main tourist destinations.
Mrs Clinton said of the decision: "I think that the Pakistani government is basically abdicating to the Taliban and to the extremists."
