Mentor’s Comment:  The Soviet-Afghan War in 1979 was a turning point when Pakistan’s intelligence agency (ISI), with support from U.S. funding, started building a network of jihadi groups. This network has since developed into the advanced terrorist groups we see today. Pakistan intentionally supported these fighters, who had various goals, including attacking Kashmir, gaining control in Afghanistan, causing sectarian violence, and fighting ideological battles. Recent data shows that terrorism sponsored by Pakistan has been rising again in the region.

Today’s editorial looks at Pakistan’s long-standing terrorist network using open-source intelligence, declassified documents, and academic studies. This content would help in GS Paper II (International Relation) and GS Paper III (Internal Security).

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Why in the News?

Pakistan’s security forces have supported terrorist groups for a long time, seeing them as useful for their goals. Since 2008, Pakistan has repeatedly been added to and removed from the Financial Action Task Force (FATF) ‘grey list’ because it has not effectively stopped the funding of terrorism.

What role did the Soviet-Afghan War of 1979 play in the evolution of Pakistan’s terror infrastructure?

• ISI’s Strategic Empowerment with U.S. and Saudi Funding: During the war, Pakistan’s Inter-Services Intelligence (ISI) became the main conduit for channeling billions of dollars in U.S. (CIA) and Saudi funds to Afghan mujahideen fighting Soviet forces. Eg: This funding network empowered the ISI to build covert training camps and logistical bases, which later supported outfits like Lashkar-e-Taiba (LeT) and Haqqani Network.
• Creation of a Jihadi Ecosystem and Proxy Network: The war institutionalised jihad as a tool of foreign policy, with ISI actively recruiting, training, and radicalising fighters. These fighters, once trained, were later redeployed for operations in Kashmir, Afghanistan, and elsewhere. Eg: The Harakat ul-Mujahidin (HUM), originally formed to fight in Afghanistan, later became one of the first Pakistani terror outfits to target Indian interests in Kashmir.
• Spread of Radical Ideology through Madrassas and Seminaries: To support the Afghan jihad, Pakistan encouraged the growth of radical madrassas, often funded by Gulf donors, to indoctrinate youth. These institutions outlived the war and became feeders for future terror groups. Eg: Many madrassas aligned with Ahl-e-Hadith and Deobandi ideologies became recruiting hubs for groups like Jaish-e-Mohammed (JeM) and LeT.

Where are the major training camps and headquarters of Pakistan-supported terrorist groups located?

• Pakistan-Occupied Kashmir (PoK): PoK serves as a key launchpad and training ground for anti-India terror operations, especially focused on Kashmir. Eg: Training camps of Lashkar-e-Taiba (LeT) have been reported in Muzaffarabad and Kotli, where cadres are prepared for infiltration into India.
• Punjab Province (Especially Lahore and Bahawalpur): Several extremist groups operate openly or under charitable fronts in Punjab, with strong logistical and financial networks. Eg: The headquarters of Jaish-e-Mohammed (JeM) is based in Bahawalpur, and Jamaat-ud-Dawa (JuD), the front of LeT, has operated from Muridke near Lahore.
• Khyber Pakhtunkhwa (KP): The rugged terrain along the Afghanistan border provides safe havens for jihadist groups with transnational reach. Eg: The Haqqani Network, linked to the Afghan Taliban, has operated out of North Waziristan, conducting cross-border attacks into Afghanistan.

How is the terror network in Pakistan financed and sustained despite international pressure?

• State and Deep State Support: Elements within Pakistan’s military and intelligence agencies, particularly the Inter-Services Intelligence (ISI), have been accused of providing logistical, financial, and strategic support to terrorist groups to serve foreign policy objectives, especially in India and Afghanistan. Eg: The ISI’s backing of Lashkar-e-Taiba (LeT) was exposed during investigations into the 2008 Mumbai attacks, where LeT operatives received training, funds, and guidance.
• Charities and Front Organizations: Terrorist groups often operate under the guise of charitable organizations to raise funds both domestically and internationally. These organizations collect donations in the name of humanitarian relief, which are then diverted for militant activities. Eg: The Falah-e-Insaniat Foundation (FIF), a front for Jamaat-ud-Dawa (JuD), raised significant funds until it was banned for links to LeT.
• Drug Trafficking, Hawala, and Extortion: Illicit economies, including narcotics trafficking, smuggling, extortion, and the hawala system (an informal money transfer network), are widely used by terrorist groups to fund their operations. Eg: The Afghan-Pakistan border region, particularly in Balochistan and former FATA, is a major route for drug trafficking, which provides revenue to groups like the Haqqani Network and TTP.

Why has Pakistan repeatedly appeared on the Financial Action Task Force (FATF) grey list rather in black list?

• Partial Compliance and Political Commitments: Pakistan has often shown partial compliance with FATF action plans, such as enacting anti-terror financing laws or prosecuting select terror operatives. These steps, while often symbolic or limited, provide just enough movement to avoid blacklisting. Eg: After being grey-listed in 2018, Pakistan passed laws to regulate charitable donations and froze some accounts linked to UN-designated terrorists like Hafiz Saeed.
• Geopolitical Considerations and Diplomatic Shielding: Global powers, especially China, Turkey, and Saudi Arabia, have used their influence within FATF to shield Pakistan from being blacklisted due to strategic and political interests, including Pakistan’s role in regional stability and Afghanistan. Eg: In several FATF meetings, China and Turkey have openly opposed efforts to blacklist Pakistan, arguing that it has made progress.

Way forward: 

• Global Accountability and Financial Sanctions: Strengthen FATF enforcement and international cooperation to impose targeted sanctions on Pakistan-based terror networks and their sponsors. Eg: Revive monitoring mechanisms to ensure closure of front charities like JuD and FIF.
• Regional Counter-Terror Framework: India and like-minded nations should push for a South Asia-focused multilateral counter-terrorism initiative with intelligence sharing and cross-border coordination. Eg: Build on QUAD and SCO platforms to diplomatically isolate state-sponsored terrorism.

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