US army General David Petraeus has said that Al-Qaeda leadership is hiding itself in mountainous areas of FATA and NWFP in Pakistan, reported a private TV channel on Wednesday. He said this while briefing a US-based conservative think tank, The Heritage Foundation. Gen Petraeus said killing or arrest of Usama Bin Laden would certainly be a major development in the war on terror being waged for many years, but more important achievement would be a complete wipe out of Al-Qaeda network. "There has been an increasing focus of operations by Pakistan," he noted saying there have been some developments there which are reassuring in regard with anti-terrorism efforts. He said al-Qaeda network has importance beyond the border region and referring to bombings in Pakistan in recent months including the Marriott attack added "the threat it poses and has materialised over the course of last year in a more challenging way into Pakistan itself." On the Afghan side, he said his strategy to decapitate terrorist network would involve an anaconda approach, pulling various resources and everyone together. "And again in the case of Pakistan, Pakistan is going to do this on their own, they do not want (foreign forces), they have a very keen sense of sovereignty," he said, noting although the issue has been one of the challenges with some of the operations in the border region. "Again they increasingly see the existential threat to their country being in the FATA, as opposed to the traditional one which is of course to the East. "And as that recognition spreads among the senior leaders, as it overtime becomes institutionalised, there will be again a better and better and better approach to that, if there is a sustained commitment by others to help them with that. And that is on. He said that the recent operations carried out by Pakistani forces in FATA and tribal areas would earn positive results. He welcomed Pakistan's increasing focus on combating terrorism in its areas bordering Afghanistan and urged sustained world support for the country's success in the fight. Responding to a question about reconciliation, Gen Petraeus said that the conflicts the US was facing in Iraq and Afghnistan at present, are mostly settled through dialogues with enemies. "Such people are hired in Iraq for security purposes whose hands are coloured with American blood, and in the same way, negotiation process could be initiated with those firing at our personnel now a days to establish peace in Afghanistan", he said adding that Afghan President Hamid Karzai, assisted by Saudi Arabia, was already negotiating with different Afghan groups.