This report from dawn.com is unlikely to be correct. A reporter is simply parroting a story from a villager. No physicians appear to be involved in the story. This appears to really be an attempt to get the Pakistani government to mobilize some public health support to this area.
It is unlikely that it is smallpox. The report describes two brothers having "smallpox" several "years" ago. If that was the case, then wild type small pox would exist and be transmitted in Pakistan for the last several years. There should be hundreds of cases identified by Pakistani WHO workers.
If this is a case of smallpox, the WHO failed to do their job (monitoring for infectious diseases in the third world).