Reports suggest that the amount is paid from President Asif Ali Zardari's special fund. The amount is the compensation for those killed during the military operations and for the properties destroyed. The militants agreed for ceasefire after the government agreed to impose 'Sharia law' in the valley after talks with hardliner Maulana Sufi Mohammad who signed the peace deal.
However, Sufi Mohammed said certain conditions need to be fulfilled to achieve a permanent ceasefire in the Swat valley. They are:
Remove army from valley
Also check post manned by police or Frontier Corps
Free all Taliban prisoners
Give compensation for people who suffered during fighting.