By Howard LaFranchi

Pakistan on Monday began returning more than 2 million refugees who were displaced by a government offensive against Taliban elements to the Swat Valley. The process will be closely watched by foreign governments, including in the United States, for signs of Pakistan's ability to reverse a growing Islamist militancy. The Pakistani government has deemed the region stabilized, and most residents, especially the 300,000 who have been living in makeshift camps for more than two months, appear anxious to go home.

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