The Bush administration reports a 16 percent increase in terrorist attacks in Afghanistan between 2006 and 2007 because of resurgent extremist activity there and in neighboring Pakistan.

A State Department report shows a corresponding rise in the number of people killed, wounded or kidnapped by terrorists last year in Afghanistan. It says that al-Qaida has rebuilt to some of its pre-9/11 capabilities in Pakistan's remote tribal areas.

The report also says attacks in Iraq dipped slightly between 2006 and 2007, but they still accounted for 60 percent of worldwide terrorism fatalities. More than 22,000 people were killed by terrorists around the world in 2007 -- 8 percent more than in 2006, although the number of actual attacks fell.