Post 9/11, the regional strategic discourse in and on south Asia has been overwhelmed by Pakistan and Afghanistan. The past 10 years witnessed Pakistan’s degeneration into a violent, terror-infested state with diminishing authority of the civilian set-up. Moreover, its role in abetting terrorism as an instrument of state policy became known and was acknowledged internationally. The prevailing situation in Pakistan is grave and the likely future scenarios dismaying.

Post 9/11, accepting the indispensability of Pakistan in solving the Afghan problem, US sanctioned massive flow of aid in Pakistan. Having committed substantial amount of aid henceforth, US feels its security objectives and efforts are frustrated by Pakistan’s duplicitous acts in the war against terror. In the wake of the Osama killing, US policy makers are debating how to devise an aid policy which could strike balance between short term objectives of counter terrorism and long term goal of stabilizing Pakistan by making aid more development oriented.