A Taliban spokesman welcomed the decision to halt the strikes in the Bajur tribal region, a rumored hide-out of Osama bin Laden near the border with Afghanistan.
In another part of the northwest, a blast blamed on a missile reportedly killed four suspected foreign militants. Residents said they saw a drone in the air shortly before the explosion, raising suspicion the U.S. was behind the strike.
Pakistan's five-month-old government at first tried peace talks with militants, but those efforts bore little fruit. It has turned to force in recent weeks, including using helicopter gunships and jets to strike suspected insurgent hide-outs.
The operation in Bajur began in early August. Interior Ministry chief Rehman Malik said Sunday the operation has killed more than 560 people the government says were Islamist insurgents and has displaced more than 300,000 people. Malik did not commit to a formal end to the operation but said people displaced from Bajur could return to the region "without any fear."
American officials have pressed Pakistan to crack down on militants in its tribal regions, fearing Taliban and al Qaeda-linked fighters involved in attacks on U.S. and NATO forces in Afghanistan use those border areas as safe zones. The U.S. is suspected of launching a series of missile strikes targeting alleged militant compounds in Pakistan's rugged and lawless tribal region along the border.
Malik said the suspension of operations in Bajur would take effect by early Monday and army spokesman Maj. Murad Khan said by late Sunday, the military had halted its activities.
Bajur has been the primary focus of military operations against insurgents, though there have also been clashes in the northwestern Swat Valley.
The numbers and scope of the operations have been almost impossible to confirm because of the remote, dangerous nature of the regions. The Pakistani Taliban have claimed responsibility for a string of recent suicide attacks, calling them revenge for the offensives.
As the crackdown has proceeded, Pakistan's government has become increasingly embroiled in political turbulence.
A short-lived ruling coalition forced Pervez Musharraf - the longtime U.S. ally in the war on terror - to quit the presidency on Aug. 18. The coalition then rapidly fell apart over disputes about Musharraf's successor and how to reinstate judges he fired last year.
Asif Ali Zardari, the head of the main ruling Pakistan People's Party and the widower of slain ex-Prime Minister Benazir Bhutto, is considered the favorite to win lawmakers' votes for the presidency on Sept. 6.
The PPP is considered generally in line with U.S. goals in fighting extremists, but because of deep anti-American sentiment in Pakistan, it has to tread carefully. Many Pakistanis blame the violence in their country on Musharraf's decision to support the U.S.
Malik insisted Pakistan was not taking American orders on how to fight extremists in its midst.
"We are fighting this war. This is our war. There is no question of America's dictation," Malik said.
Pakistani Taliban spokesman Maulvi Umar said the suspension of the operation in Bajur was welcome, and he reiterated an offer to negotiate with the government. However, he said militants would not lay down their arms as the government has demanded.
Umar also said that, as a gesture of goodwill, the militants would release six paramilitary troops out of 30 they claim to have in captivity.
It was not immediately clear whether authorities were also suspending military operations in Swat.
Muslim Khan, a Taliban spokesman in Swat, said militants would not halt their activities during Ramadan despite any suspension of an army operation.
"This is not a war, but jihad, and this is our faith that rewards for good deeds and that is multiplied during the holy month," Khan said.
In the North Waziristan tribal region, witnesses and a local intelligence official said a blast Sunday destroyed a house and a missile strike was suspected.
At least four people were reported killed and two injured in the blast in Tapi village, said the intelligence official, who spoke on condition of anonymity due to the sensitive nature of his job. He said all six were believed to be foreigners.
Local militants immediately surrounded the site, said area residents Mohammad Ayaz and Noor Rehman. Both said they saw a drone in the air before the explosion at about 3 p.m.
Capt. Christian Patterson, a spokesman for the U.S.-led coalition in Afghanistan, said its troops had not fired any missiles into Pakistan on Sunday. Past missile strikes are believed to have been conducted by the CIA using Predator drones.
If confirmed, it would be the second missile strike in two days in a tribal region.
Also Sunday, a tribal council in the Salarzai area of Bajur warned Taliban militants they would be shot on sight and told residents not to shelter insurgents or risk loss of money and property, two elders told The Associated Press.
Tribal leaders oversaw the burning and destruction of about a dozen homes and centers of suspected militants, said the elders, Malik Manasib Khan and Malik Bakhtawar Khan.