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Afghan President Ashraf Ghani stepped back Monday from attempts to engage Taliban insurgents in peace talks, vowing Afghanistan will instead “execute” enemies of the state and undertake preparations for an extended war.

In a speech that signaled a significant shift in policies, Ghani left open the prospects for dialogue with Taliban fighters who put down their weapons. But Ghani deemed both the broader Taliban organization as well as its Pakistan-based offshoot, the Haqqani Network, “terrorists” and vowed expanded attacks by the Afghan military.

Ghani’s remarks represent a setback for the Obama administration’s hopes that the 14-year Taliban insurgency can be ended through a negotiated settlement. Back-channel discussions have been ongoing for the past three years trying to establish the framework for such talks.

“The enemies of Afghanistan should realize, if they are captured in the battlefield fighting against the people of Afghanistan, or in terrorist activities, they will definitely be handed over to the law, and will be dealt with on the basis on the law,” said Ghani, adding his government will resume capital punishment for convicted terrorists.

He spoke before a joint meeting of parliament nearly a week after Taliban assailants killed 64 people and injured 347 others in Kabul in one of the largest attacks in the capital in years.

In response, Taliban spokesman Zabihullah Mujahid insisted the militants would not back down, calling the current Afghan leaders “mercenaries imposed on the nation” by their American allies.

The linchpin for peace talks has always rested with Pakistan, which has permitted some of the Taliban leaders to reside there.

Pakistan has been unable — or unwilling — to apply enough pressure on the Taliban to enter negotiations. And officials now believe most Taliban factions have united behind a call by the group’s supreme leader, Akhtar Mohammad Mansoor, to fight at least through this year.

In his speech, Ghani demanded Pakistan arrest and hand over Taliban leaders who find refuge in eastern Pakistan.

If Pakistan fails to act, Ghani said Afghanistan would push for “responsible international entities” to “act outside of Afghanistan against the criminals whose hands are stained in the blood” of Afghans.

Still, Western diplomats have stressed there are likely limits to what Pakistan can do without risking a domestic blowback that could destabilize that nuclear-armed country.

Despite his tough talk toward the Taliban and Pakistan, much of Ghani’s speech appeared aimed at shoring up his own domestic political support.

In recent months, Ghani and the country’s chief executive officer, Abdullah Abdullah, have struggled to agree on nominees for scores of government positions. Afghans have also criticized Ghani for failing to boost the economy, including soaring unemployment.

Ghani’s leadership will be further tested by two upcoming international conferences that will decide whether foreign donors, including the United States, will continue to spend $7 billion annually to fund reconstruction and the country’s military.

President Obama also must decide later this year whether he plans to follow through on his plan to reduce U.S. troop levels from the current 9,800 down to 5,500 by January.

For months, Afghan critics have accused Ghani — a former World Bank official who spent much of his adulthood in the West — of being too disconnected from everyday hardships.

The speech “was not based on (Ghani’s) depth of strategy and just a reaction of developments, to reduce the level of people’s mistrust,” said Fauzia Koofi, an Afghan parliament member.

But Mohammad Nateqi, a former Afghan diplomat, said Ghani has at least attempted to clarify his objectives.

“This is a turning point and change,” Nateqi said. “His tone was focusing on defensive and war preparations.”