WASHINGTON - THE Pakistani army is gaining in its offensive against Islamic extremists in the Swat valley because public support for the operation is solidifying, US Director of National Intelligence Mr Dennis Blair said in a speech.

'For the first time, the Pakistan army operations in that part of the world have support of the government and the public. This is really different from the past, when the army went up and there was little backing,' Mr Blair told an audience of intelligence professionals on Monday night.

Pakistan launched an offensive to expel Taleban militants from Swat last month in a move welcomed by Western allies worried that the nuclear-armed country was sliding into chaos.

Just back from Pakistan and Afghanistan, Mr Blair said support for the military operation solidified after a recent wave of retaliatory bombings by the Taleban.

'I think these are having the effect of driving home to the public the seriousness of the threat that's coming from that part of the country,' Mr Blair said.

Another difference, Mr Blair said, is that Pakistani leaders he spoke to last week were realising the key to stability was security and development after the fighting ends.

Pakistan has set up camps in the Mardan district for some of the 2.5 million people who fled the conflict zone northwest of the capital, Islamabad.

'We can see the plans they're making for bringing displaced persons back home and providing basic security and governance when they're there,' Mr Blair said.

'The Pakistanis I talked to were optimistic about their ability to handle the situation and were willing to work with the United States in ways that had not been previously possible, so I think there are signs that things are moving in a positive direction,' Mr Blair said. -- REUTERS