Pakistan's current instability makes it the most dangerous country in the world, Defence Minister Peter MacKay warned Monday.

MacKay, who spoke to reporters during a stop in St. John's, said the instability could also impact Canada's mission in Afghanistan.

"I'm extremely concerned," said MacKay. "The instability in Pakistan, in my view, makes Pakistan the most dangerous country in the world."

Last week Pakistan launched a major military offensive against the Taliban, which controls the Swat Valley in the country's northwest.

Pakistan's government says 700 militants have been killed since last week and more than 360,000 forced to leave their homes. An additional 500,000 people have fled the region since last August.

MacKay said it will remain challenging to establish peace in Afghanistan until greater strides are made in taking on the insurgency in that country as well as neighbouring Pakistan. Roughly 2,800 Canadians are serving in Afghanistan as part of the NATO-led mission.

"Clearly the impact on the mission in Afghanistan is based on the ability of the Taliban to recruit, to regenerate, to rearm, and then to move that insurgency back inside the borders of Afghanistan," he said.

MacKay said cutting off the Taliban's supply chain and the addition of thousands more U.S. soldiers will help bring security to Afghanistan, particularly the Kandahar region.

"As long as insurgency is allowed to foster and to incubate inside Pakistan, the problem remains very real, very difficult."

With files from The Canadian Press