LADHA / MIRAMSHAH, Nov 2: The banned Tehreek-iTaliban Pakistan (TTP) on Saturday termed Hakeemullah Mehsud`s death in a drone strike on Friday a major setback for `Jihadi groups`.

Maulana Azam Tariq, a spokesman for TTP`s South Waziristan chapter, told Dawn that the militants would continue their `Jihad`.

`We have faith that hundreds of thousands more Mujahideen will take birth...

and we will take revenge from America and its associates`.

He said the Taliban would appoint a `suitable and competent person` in the next few days to lead the TTP and a meeting of their Shura (council) was in progress.

Hakeemullah was killed when a suspected US drone fired two missiles at his house in Dandidarpakhel area adjoining Miramshah on Friday evening. His house and a vehicle were destroyed and five other people, including an uncle of his, were also killed.

According to sources, Hakeemullah and his slain associates were buried at an undisclosed place in North Waziristan on Friday night.

Azam Tariq, who was a close associate of slain TTP deputy chief Waliur Rehman, said that on one hand the government was talking of peace talks, while on the other hand important militant targets were being attacked. Waliur Rehman was also killed in a drone stack in North Waziristan in May.

`We strongly condemn hypocritical and anti-Islam policies of the rulers and they will bear its consequences,` he said.

The TTP spokesman said the government should pull out of the US-led war, otherwise, peace talks were not possible.

The sources said that Azam was also very close to Khan Said alias Sajna, who is likely to be the next chief of the TTP.

Khan Said also belongs to the Mehsud tribe, but was close to Waliur Rehman.

Miramshah, the North Waziristan administrative headquarters, remained tense amid movement of unmanned planes over the area throughout the day.

People started firing into the air when one of the planes came at a low altitude.

Armed men have cordoned off the area around Hakeemullah`s home in Dandidarpakhel.

The vehicle of Hakeemullah, who had a $5 million US bounty on his head, was hit after he had attended a meeting ofTaliban leaders, a militant said, adding that his body was `damaged but recognisable`, according to news agencies.

According to some reports, Taliban leaders had voted to replace him with Khan Said, the movement`s number two.

He is believed to have masterminded an attack on a jail in Bannu that freed nearly 400 prisoners last year and a big attack on a naval base.

But some militant leaders were unhappy with the choice and wanted more discussion, militant source said.

Residents of Miramshah said Taliban fighters were converging on the town and firing furiously at drones buzzing in the sky.

About eight drones were seen overhead as well as a larger aircraft that appeared to be an aeroplane or a type of drone that residents said they had not seen before. `We thought it was a C-130 aircraft but it was a special spy plane,bigger in size,` resident Farhad Khan said. `The militants fired their anti-aircraft guns to hit it but couldn`t.

Shops and markets were open in the town and residents said they were worried about a possible army offensive, but not Taliban reprisals.

`We feel the militants will show their reaction in major cities like they usually do,` resident Assadullah Dawar said.

The TTP`s supreme shura met on Saturday to decide who should now lead the network. `The members of the supreme shura are taking opinions from all the shura members and senior commanders,` a Taliban leader told AFP.

`However, the decision may take more time because the shura members are constantly changing the meeting place.

Candidates under consideration to take over from Hakeemullah also include Asmatullah Shaheen Bhittani, the head of the central shura.