Wazoo tribal district on Wednesday, witnesses and officials said.The rare festivities came one day after a bomb killed three Pak soldiers and although military officials confirmed troops were in action, there was no sign it was the start of a major offensive, long demanded by the Americans.
An AFP news hound heard several blasts and saw several Taliban fighters firing on Pakistain army checkposts with automatic weapons and rocket launchers in the town of Miranshah, 300 kilometres (188 miles) southwest of Islamabad.
The market shut down and the town was plunged into a black out after Talibs targeted an electricity transformer, the news hound said.
A security official said troops were retaliating with artillery, small and heavy weapons.
"An exchange of fire is continuing. There are no casualties on our side," a military official in the main northwestern city of Beautiful Downtown Peshawar told AFP.
The official said troops were dynamiting a private hospital, where Taliban and other bad boy fighters were being treated.
On Tuesday, a remote-control kaboom near the same hospital killed three Pak soldiers and maimed another 15, security officials said.