Another part of Pakistan set to fall to Taliban....

They are moving closer to Islamabad...

Taliban militants from Pakistan's Swat Valley are tightening their grip on a neighboring northwest district closer to the capital — patrolling roads, broadcasting sermons and spreading fear in another sign that a government-backed peace deal has emboldened the extremists to spread their reign.

Pakistan's president signed off on the peace pact last week in hopes of calming Swat, where some two years worth of clashes between the Taliban and security forces have killed hundreds and displaced up to a third of the one-time tourist haven's 1.5 million residents.

The agreement covers Swat and other districts in the Malakand Division, a huge chunk of Pakistan's northwest that borders Afghanistan and the tribal areas where al-Qaida and the Taliban have strongholds. Under the deal, the provincial government agreed to impose Islamic law in Malakand, and the Taliban agreed to a cease-fire.

Supporters say the deal will allow the government to reassert control by taking away the militants' rallying cry for Islamic law.

But critics, including U.S. officials, have warned that Swat could be the first domino to fall to the Taliban — and that Islamabad, capital of the nuclear-armed nation less than 100 miles (160 kilometers) away, could eventually follow.

In recent days, the Swat militants have set their sights on Buner, a district just south of the valley, sparking at least one major clash with residents. The moves indicate the militants want to expand their presence beyond Swat to other parts of Malakand at the very least, under the guise of enforcing Islamic law.

Many in Buner are now too frightened to speak to reporters. However, a lawmaker from the area told The Associated Press that the militants had entered the district in "large numbers" and started setting up checkpoints at main roads and strategic positions.

"They are patrolling in Buner, and local elders and clerics are negotiating with them to resolve this issue through talks," Istiqbal Khan said.

The militants in Buner also are using radio airwaves to broadcast sermons about Islam, and have occupied the homes of some prominent landowners, said a police official who insisted on anonymity because he was afraid of retaliation. He said the militants have also warned barbers to stop shaving men's beards and stores to stop selling music and movies.