BBC – South Asia
9 July 2011 Last updated at 10:15 ET
Mr. Panetta said that following the killing of Osama Bin Laden, key leaders in Pakistan, Yemen and elsewhere had been identified and would be targeted.
He offered the upbeat assessment during his first visit to Afghanistan since taking over at the Pentagon last week.
Earlier, a member of Afghanistan’s intelligence service shot dead two US soldiers in the Panjshir valley.
The National Directorate of Security (NDS) officer, a bodyguard for its deputy director, was killed when another US soldier returned fire.