Under the peace deal, the Taliban were to lay down their arms in return for Sharia laws being imposed in Swat and six other districts of the NWFP that are collectively known as the Malakand division.
Instead, the Taliban moved south from their Swat headquarters and occupied Buner district that is just 100 km from Islamabad.
This prompted the Pakistani security forces to launch on April 26 full blown operations against the Taliban, beginning from Sufi Mohammad's home district of Lower Dir and later spreading to Upper Dir, Buner and Swat.
Some three million civilians were displaced due to the fighting, which is now winding down. More than 1,500 militants have been killed in the military operations.
Sufi Mohammad is the father-in-law of Swat Taliban commander Maulana Fazlullah, who is also known as Mullah Radio for his vitriolic anti-government and pro-Taliban broadcasts on FM radio.
There had been reports that Fazlullah had been wounded but these were negated when he returned to the airwaves earlier this month.