A reporter of a leading newspaper in his dispatch from Miran Shah, the headquarter of North Waziristan Agency, where the Pakistani troops have been fighting against Taliban, stated that militants reached an understanding with the government on Saturday on restoring peace in North Waziristan but said the agreement would be signed in a couple of days.
The understanding was reached in a meeting between a shura of local militant leaders and a jirga formed by the government to mediate on its behalf at Madressah Ashrafia near Miramshah.
The breakthrough was achieved after the government accepted most of the militants' demands - the release of all their men, return of their weapons and vehicles seized during various operations, dismantling of checkpoints including the strategic posts at Esha, Khajori and Boya, restoration of all perks and privileges of the tribal people and compensation for those killed and property damaged.
The government has released most of the men, returned some of their weapons and dismantled some checkpoints.
Authorities said the remaining few militants were expected to be released soon.
The unresolved issues are: compensation for the deaths and destruction caused during military operations and withdrawal of military from checkpoints to its fortes in Waziristan.
The amount demanded by the militants as compensation is not known but an official said the figure was 'astronomical'.
Sources said the militants had been assured that army would be withdrawn to the fortes as soon as peace was restored.
The sources said the militants had accepted the government's demand of immediately ceasing attacks on civil and military installations.
In a major concession, the government had said that foreign militants could either leave the region or abide by the law of the land after furnishing tribal guarantees of good conduct, the sources said.
They said the draft of the agreement was ready and the jirga would return to Peshawar on Sunday to present the document to NWFP Governor Ali Mohammad Jan Aurakzai.
Many observers described the news of agreement between Taliban and Pakistan government a victory for terrorists.