The Pakistani Taliban's chief is vowing to turn Pakistan into "another Afghanistan or Iraq" unless the military stops its assault in the militants' stronghold near the Afghan border.

The army is claiming new advances into South Waziristan after capturing the hometown of Pakistani Taliban chief Hakimullah Mehsud and one of his top deputies yesterday.

The military says most homes in the town had been converted into bunkers and it had hosted a training camp for suicide bombers.

After capturing two key fronts, the army says its forces are closing in on a militant base.

In a telephone call with The Associated Press, Mehsud warned of new attacks across the country and claimed the militants haven't "suffered any significant losses."

The Taliban have carried out a string of bombings over the past three weeks that has killed about 200 people.