SWAT - In the wake of successful talks, held between Tanzim-e-Nifazi-Shariati Muhammadi (TNSM) chief Maulana Sufi Mohammad and Tehrik-e-Taliban Pakistan (TTP), top leadership formally agreed on 'permanent ceasefire' in the restive Swat Valley, it was announced by Regional Coordination Officer (RCO) Malakand here on Saturday. Addressing a Press conference in Mingora, RCO Malakand Division Mohammad Javed Khan said that both Taliban and the government agreed to announce permanent ceasefire in the valley. He also asked the internally-displaced persons of District Swat to return to their homes, as there would now be an ever-lasting peace in Swat. He said that the government had decided to compensate the affected people of District Swat as they suffered a lot and were tortured during the military operation. He announced that the heirs of those who were killed during the military action would be compensated and given Rs300,000, while those who were injured would be given Rs100,000. He requested the police personnel who had refused to attend their duty in Swat to rejoin their duties. He said that those police officers who had attended duties during the crucial days would be rewarded double salary and immediate promotion. He also issued directives to the quarters concerned to reopen all the educational institutions on due dates and to inform both male and female students to attend their classes without any fear. He said tents would be provided to all those schools, which were destroyed during the operation while funds for their reconstruction had already been released. Regarding the probe into the brutal assassination of journalist Moosa Khankhel he said that some important developments had been made about the perpetrators and soon these elements would be brought to justice. He also condemned the killing of Moosa Khankhel and expressed his heartfelt condolences with the bereaved family of the young journalist. Agencies add: He said that considerable progress has been made in talks with the Taliban leaders and as a result of which all the schools would be reopened in the district. The students would be provided security and protection while alternate arrangements would be made for schooling in areas where schools have been destroyed which would be mostly accommodated in tents. About girls' schooling, he said, talks in this connection were underway with the Taliban. To a question, he said, magistracy system would be revived soon in Swat with the appointment of Deputy Commissioners and Assistant Commissioners. The Chief Minister would himself make announcement in this regard shortly, he added. He announced to abolish the checkposts set up on various routes and there would be no hurdle in smooth flow of the traffic. He also extended an invitation to Chief Minister to visit the valley at his earliest time. The agreement, between the militant commander Maulana Fazlullah and local administrators, builds on a previous temporary deal. "They have made commitment that they will observe a permanent ceasefire and we'll do the same," Javed told reporters. Mohammad Javed revealed the deal, but the Taleban said negotiations were continuing. "They have made commitment that they will observe a permanent ceasefire and we'll do the same," Javed said. He said that the Army would scale back its operations in the valley. A Taliban spokesman told the BBC that while Maulana Fazlullah had expressed his satisfaction with the peace agreement, the rebels would not lay down their arms until the new Sharia regulations were enforced to their satisfaction. He said negotiations between the two sides were continuing but no deal had yet been reached. The announcement by Malakand Commissioner was short on details but came amid government efforts to persuade the Swat Taliban to stop fighting in return for the imposition of Islamic law in the one-time tourist haven. However, Muslim Khan, spokesman for the Swat Taliban, told a foreign news agency that the group wasn't ready to announce an agreement. "We do welcome the government's announcement of the permanent ceaseefire, but as far as the ceasefire from our side we can announce it on our own, and we will do that ourselves." Last Sunday, militants called a 10-day ceasefire in the valley as a 'goodwill gesture' toward the peace talks. It runs out on Wednesday. "We heard that the government announced a permanent ceasefire, but we have announced a 10-day ceasefire and we will consider an extension when it ends," Taliban commander Maulana Fazlullah told illegal FM radio. Fazlullah congratulated his men on what he said was the reintroduction of Sharia in Malakand. "Your sacrifices have not gone to waste, but they have proved a success for Pakistan, particularly for Malakand," he said. Government officials were not immediately available to comment on Fazlullah's statement.