April 15 (Bloomberg) -- The Pakistani cleric who led a violent campaign to impose Islamic law in the Swat Valley called on Taliban militants to lay down their arms and said he will hold a rally to push for peace.

“People will be told to give up weapons and in the region live in peace,” Sufi Muhammad, chief of a pro-Taliban group, said at a televised news conference in Swat today, announcing the April 19 rally.

President Asif Ali Zardari signed a peace accord two days ago that imposed Islamic law, or Sharia, in the valley. In return, militants pledged to end almost two years of fighting in the once popular tourist destination northwest of Islamabad.

The U.S. criticized Zardari’s decision, with White House spokesman Robert Gibbs telling reporters yesterday “solutions involving security in Pakistan don’t include less democracy and less human rights.”

During the campaign to impose Islamic law in Swat, militants burned schools, banned education for girls and beheaded government officials. Muhammad, speaking in the local Pashto language translated into Urdu by his spokesman, said that “infidels are opposing Sharia.”

President Barack Obama is pressing Zardari’s government to crack down on the Taliban and last month said a $7.5 billion aid package over five years proposed by Congress should be conditional on cooperation in fighting extremism.

Pakistan’s government says it is doing all it can to combat militants, through selective military force and political and economic development programs.

Civilian Courts

Under the accord, Islamic judges will ensure speedy justice in the region, Information Minister Qamar Zaman Kaira said yesterday, the state-controlled Associated Press of Pakistan reported. The Taliban in Swat must now uphold their side of the agreement and lay down their arms, Kaira added.

Decisions by Islamic judges won’t be challenged in Pakistan’s civilian courts, Muhammad said.

The government in Islamabad is seeking as much as $6 billion in financial assistance from a group of donors over the next two years to alleviate poverty and meet its security needs. The so-called “Friends of Democratic Pakistan” group, which includes the U.S., China, Saudi Arabia and the World Bank, is due to meet in Tokyo on April 17.

Prime Minister Yousuf Raza Gilani opposes any U.S. conditions on aid and said this week they would fail to generate the desired goodwill in Pakistan.

‘Benchmarks’ Established

The U.S. State Department yesterday rejected Gilani’s call for aid to be unconditional and said “benchmarks” would be established. “We want to see certain standards and goals met,” spokesman Robert Wood told reporters.

The Obama administration says the border between Pakistan and Afghanistan has become a base for Taliban and al-Qaeda militants and has made tackling extremism in the region one of its most pressing foreign policy goals.

The U.S. is sending an additional 17,000 soldiers and 4,000 trainers to Afghanistan, taking the number of American personnel there to about 60,000.

The Taliban insurgency will probably intensify as the extra troops arrive, Admiral Michael Mullen, chairman of the Joint Chiefs of Staff, said yesterday.

“That said, it’ll put us in a position to start to turn the tide and provide security for the Afghan people, which is absolutely critical, in addition to training the Afghan forces,” Mullen told ABC television’s “Good Morning America.”

To contact the reporters on this story: Khalid Qayum in Islamabad at kqayum@bloomberg.net; Ed Johnson in Sydney at ejohnson28@bloomberg.net.

Last Updated: April 15, 2009 02:43 EDT