U.S. missile strike in Pakistan kills five

By Kamran Haider

ISLAMABAD (Reuters) - A U.S. missile strike killed five militants in northwest Pakistan on Wednesday, a Pakistani official said.

Another official said the attack on a container loaded with ammunition and explosives was the result of better U.S.-Pakistani intelligence sharing and both countries had worked together on the attack.

The United States, frustrated by a growing Taliban insurgency in Afghanistan, has stepped up attacks on militants in Pakistan with six missile strikes and a helicopter-borne ground assault this month.

U.S. officials say Taliban and al Qaeda-linked fighters use ethnic Pashtun tribal regions on the Pakistani side of the border as a springboard for attacks into Afghanistan.

But the U.S. attacks have infuriated many in Pakistan, which is also battling al Qaeda and Taliban militants, and the army has vowed to stand up to aggression across the border.

The latest U.S. missile strike by a pilotless drone came at dusk over Baghar village in the South Wazirstan region. The drone fired four missiles at a tented camp.

Three of the dead were Arabs, according to a Pakistani intelligence officer who declined to be identified.

A new government in nuclear-armed Pakistan has promised support for the U.S.-led campaign against Islamist militancy even though the campaign is deeply unpopular with many Pakistanis.

RESPECT FOR SOVEREIGNTY

Hours before the missile strike, Admiral Mike Mullen, chairman of the U.S. Joint Chiefs of Staff, assured army commander General Ashfaq Kayani and Prime Minister Yousaf Raza Gilani of U.S. support.

"Admiral Mullen reiterated the U.S. commitment to respect Pakistan's sovereignty and to develop further U.S.-Pakistani cooperation and coordination," the U.S. embassy said.

Mullen said earlier this month he was not convinced Western forces were winning in Afghanistan and he was "looking at a new, more comprehensive strategy" that would cover both sides of the border, including Pakistan's tribal areas.

The tension with the United States compounded worry on Pakistan's financial markets.

Dealers said the rupee weakened to a new low of 77.20/30, partly because of the row with the United States, a major source of financial help for Pakistan as it struggles with economic problems, but it firmed slightly before the close.

Stocks also ended down in the lowest ever trading volume with tension with the United States adding to worry about a global financial crisis and a weak domestic economy.