The mountainous and thickly forested valley is divided into North Waziristan and South Waziristan where forces are fighting the militants.
The decision to dismantle Taliban's last stronghold was taken during a meeting Prime Minister Sharif had with Chief of Army Staff General Raheel Sharif at the Premier's House today.
The official statement issued after the meeting confirmed that during it "matters relating to internal and external security of the country came under discussion."
Shawal Valley is considered as the last sanctuary of militants after security forces cleared the Tirah Valley in the Khyber tribal district.
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Tirah was the stronghold of rebel Mangal Bagh, a powerful ally of the Taliban, but he was forced to flee the region to Afghanistan after suffering heavy losses during the operations launched following the militant attack on the military school in Peshawar last December.
Relations with Kabul have improved and for first time Pakistan's spy agency Inter-Services Intelligence and Afghanistan's spy agency National Directorate of Security (NDS) have signed an agreement for cooperation.
However, NDS yesterday said the recent MoU it signed with Pakistan's ISI for sharing of intelligence and coordinated operations was "not practical" and the deal will be reviewed by a panel of experts.