Pakistan faces tough task rejuvenating battered Swat: Reuters

Nearly a year after a Pakistani army offensive cleared the Taliban from Swat, government efforts to stabilize the region through economic rehabilitation have yielded limited results.

While small businesses are recovering from two years of fighting, massive state funding is needed to create jobs and industries in the former tourist hub where militants blew up hotels, houses and girls' schools and beheaded tribal elders.

Only that, officials say, will prevent the Taliban from returning to recruit residents disillusioned with a government widely perceived as corrupt and inefficient.

"This is by far the most important drive to keep the Taliban away," chief regional minister Amir Haider Khan Hoti told Reuters recently.

The first phase will require $1 billion, he said. It's a daunting task for the government, which will be hard-pressed to extract money from a sluggish economy battered by the steep cost of fighting Taliban insurgents.

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