Pakistan authorities have handed over the South Waziristan Agency, a 'hotbed of foreign militants' bordering Afghanistan, to a wanted terrorist who till recently carried an award on his head, media reports have said.

"To facilitate Commander Ubaidullah Mahsood, Pakistan President Pervez Musharraf [Images] has withdrawn all troops from the area under Mahsood's control," a report in the South Asia Tribune said, adding, "Mahsood, who had a head money of several hundred thousand rupees is now running his own government in the Agency and in Taliban style."

The report said Mahsood has banned television, satellite dishes, music and videos declaring them un-Islamic. Kids cannot play cricket as it is described as the game of infidels. Shops are forced to close during prayer timings and those who try to skip the prayers are forced to proceed to the mosques.

"What has stunned the local population is the sudden transformation of fortunes of the former Taliban leaders and supporters and how those who were till recently hunted by the Pakistan Army for months, had gained legitimacy and returned to power," it said.

Claiming that Mahsood had "gained power with the help of the army," the report said Al Qaeda [Images] had "got its millions back to organise further terrorism in Northern Pakistan. Some of the wanted foreign militants have now been spotted in Wana, the capital of South Waziristan."

More reports from Pakistan