Pakistani authorities Saturday freed 78 people who had been arrested in a hunt for al-Qaeda suspects and their local sympathizers in March in the country's tribal area, local news agency News Network International reported.

The 78, many of them belonging to the local Wazir tribe, and Afghans, who were living as refugees in the area, were released from a prison in Tank, a town some 80 km east of Wana, headquarters of South Waziristan tribal area, a local official was quoted as saying.

The freed were given 500 rupees (8 US dollars) each for travel expenses to return home after they were declared innocent during the interrogation, the official said.

A grand Jirga of tribal area will be held on Sunday to discuss the issue of some foreign militants, who failed to surrender by deadline April 30.

Last month, a peace deal brought to an end the fighting between Pakistani troops and the local tribal militants after the surrender of five powerful tribesmen, who were accused of sheltering al-Qaeda suspects.

Hundreds of foreigners who fought against the former Soviet forces in Afghanistan in the 1980s have taken refugee in the Pakistani tribal areas bordering Afghanistan.

About 163 local and foreign suspects were captured and more than 120 were killed, including at least 48 soldiers, in an operation launched by Pakistani troops in March.