Innumerable letters and telegrams were sent to Yahya Khan against the Wali, not only from Swat but also from other corners of the country even in forged names and in dozens by single individuals. However, the Wali was not ready to give concession, introduce reforms and give up even a minor portion of his powers and authority. He was stubborn and arrogant and his stand was that either he himself will rule with absolute powers and authority or there will be no State at all.
The Wali detained Fateh Muhammad Khan, his brothers and Sardar Khan of Sijbanr on charges of their would-be attack on him. He terminated services of Prof. Abdul Wahid Khan, one of the early members of the "Malki Rurwali", and member of its Executive Committee, as well as various other persons. Later arrest of Amanullah Khan and Malik Sher Muhammad Khan, a former Revenue Minister of the Swat State, was ordered. The Wali's militia attempted to arrest both of them and in an incident of firing a servant of Malik Sher Muhammad Khan lost his life.
At this, some of the leaders rushed to meet Yahya Khan to apprise him of the critical situation in Swat. But he was out of Rawalpindi to entertain President Nixon who was on his visit to Pakistan.So instead Lt. Col. Arif (later General Arif) who was Military Secretary to Yahya Khan was contacted. He ordered the authorities to direct the Wali to abstain from such acts. Ajmal Khattak, Afzal Bangash, Arbab Sikandar Khan Khalil, Pir Fazle Khaliq, father of General Fazle Haq, a brother of Yahya Khan and some other politicians were already co-operating with the movements. Then some of the leaders called on Mahmud Ali Qasuri and Z.A. Bhutto and sought their cooperation. Bhutto assured them of his help.
Thus due to the aforementioned developments and causes, the stage for the drama was set. Yahya Khan was not in favour of the merger because of the developments in East Pakistan, the proximity of the States (Chitral, Dir and Swat) with USSR, and due to the would-be administrative burden. However, it is generally said and believed that Pirzada included announcement of the merger of the States in Yahya Khan's speech, which was not included in the original draft. Yahya Khan announced thus merger of Swat State with Pakistan, along with the States of Dir and Chitral, in a proclamation on July 28, 1969.
It should be noted that from the very outset Pakistan's policy towards the Princely States was not in interest of the States. SJ. Olver reports, in a secret letter on 15th July, 1948 from the Office of the High Commissioner for the United Kingdom, Karachi, that "in order to put pressure on Kalat itself to accede to Pakistan, offer of accession from these feudatories (i.e. Lass Bela, Kharan and Makran who were the former feudatories of the State of Kalat) were engineered and accepted by Pakistan. The legal validity of the accession in these three cases is not altogether free from doubt...".
After seeking accession of the Princely States Pakistan, too, embarked on the policy of their merger. Liaqat Ali Khan expressed his will "that the time has come for us to merge these States". But he was assassinated before materializing his decision. So all other States were merged save the three States of Swat, Dir and Chitral. It was the geo-strategic location of these States and some other factors that their merger took such a time. However powers of the rulers of the States of Dir and Chitral had been curtailed many years before their formal merger by appointing Political officers there who practically wielded all the powers of the rulers. While the Wali of Swat wielded all the powers up till the merger. So effects of the merger did not prove the same in all the three States and, in fact, it was Swat State that was merged by Yahya Khan.
It is worth mentioning that most of those who worked against the autocracy were in services at the time and associated with the underground movement. They remained in services after the merger as well. They did not come open and remained in background. So the credit was cashed by those who remained loyal to the Wali throughout their life but became aggrieved in the last days due to their own causes or by those who were not in the services. This was probably the only instance in history where only two lives were the price paid for winning against autocracy.
Merger of Swat State with Pakistan brought an end of autocracy, solace for a section of the people, political freedom for all, open competition, equal opportunities in all services and all fields, security of services and promotions under a certain policy. However many servants of the State in different departments and in different ranks were forcedly retired by the Deputy Commissioner of Swat citing Pakistani law. But they were deprived of their pensions and other benefits, permissible under the Pakistani rules, on the plea of status quo. Some were dismissed. All these were contrary to the assurances of the Pakistani President given to the State servants after the merger.87 That was why an "All Swat Employees Association" was formed by the ex-State servants for safeguarding their rights and interests.
The immediate response of the merger of Swat State was resentment of the pro-Wali group in Swat and that of the Government of Afghanistan. The pro-Wali group in Saidu Sharif and Mingawara agitated and plundered property of Mahmud ul Hasan Butt. However Humayun Khan, Political Agent Malakand and who was made Deputy Commissioner of Swat as well after three days, pacified the anti - merger agitation with a stratagem. Giving the bureaucratic assurance of his full support, he asked the anti-merger lobby to stop agitation in order to avert army action against the Wali and the agitators themselves. And instead a campaign of letter writing and getting signatures against the merger be initiated so that to be sent and forwarded to Yahya Khan. The Wali himself, too, was not in favour of agitation due to his own causes. The agitation ended. The letters and signatures, double of the total number of the population (they were of course forged), did not reach Yahya Khan but were burnt.