WASHINGTON, March 23: The United States is satisfied with the military action Pakistan has taken in South Waziristan against suspected Al Qaeda and Taliban fighters, US Deputy Secretary of Defence Paul Wolfowitz said on Tuesday.

Addressing a gathering at the Pakistan embassy here on the Pakistan Day, Mr Wolfowitz said terrorists posed a threat to Pakistan as well. "The terrorists are threatening Pakistan's unity by creating religious differences between various factions of the Muslims and Christians," he said.

Similarly, he said, they were isolating Pakistan from the rest of the world community and were creating all sorts of divisions within the Pakistani society. He praised Pakistani soldiers who gave their lives while fighting suspected terrorists in South Waziristan and said the United States honoured their sacrifices.

He said US-Pakistan relations were back on the track after an unfortunate decade of estrangement. Earlier, ambassador Jehangir Ashraf Kazi welcomed Mr Wolfowitz to the embassy and introduced him to the guests.