Suspected Taliban blast kills over 34 in Pakistan

A suspected Taliban suicide bomber has killed at least 34 people in the Pakistani city of Rawalpindi. The city is just a few kilometers away from the capital Islamabad. The blast came as the government announced a reward of up to 5 million US dollars for the capture, dead or alive, of the group's leader.

The blast went off in the parking lot of the Hotel Shalimar, near the army headquarters.

Several shopping centers, hotels and banks are in the area.

Officials say many of the victims were elderly people who had gathered at a bank to withdraw their pensions.

Local media reports all schools across the city have been closed because of the blast.

So far no group has claimed responsibility, but the government blames militants for such attacks.

Top officials have condemned the blast and say such attacks will not deter the government's campaign against the militants.

The army offensive is pushing deeper into the militant bastion along the Afghan border.

The blast came as the government announced rewards of up to 5 million US dollars for information leading to the capture, dead or alive, of Pakistani Taliban leader Hakimullah Mehsud and more than a dozen other leaders.

The government, says the troops are zeroing in on two major Taliban bases, Sara-rogha and Makeen, in the South Waziristan region.

Makeen is described as "the nerve center" for the militants.  Nine militants were killed during Sunday's fighting, taking that death toll to more than 330 in 16 days of fighting.

Security officials expect heavy fighting in the coming days.