Pakistan is not on the US list of state sponsors of terrorism, and indeed is often praised as a vital ally in the war on terrorism. Since September 11, 2001, the Pakistani government has detained hundreds of al-Qa'ida members, including several of its most senior officials, and Pakistani and US forces work together to hunt down al-Qa'ida members who fled from Afghanistan. Yet even as Pakistan cooperates on al-Qa'ida, it sponsors several terrorist groups, particularly those active in the disputed state of Kashmir. Since 1989, Pakistan has funded, armed, trained, and otherwise supported a host of Kashmiri organizations in their struggle against Indian rule. Although US pressure after the September 11 attacks led this support to diminish at times, Islamabad's ties to, and backing of, various groups in Kashmir remains significant. Indeed, with the possible exception of Iran, Pakistan is probably today's most active sponsor of terrorism.

Pakistan's support for radicals in Kashmir is part of its overall effort to back various insurgent movements in Kashmir. In general, Pakistan is not interested in the Kashmiri militants exclusively because of their involvement in terrorism. Islamabad's emphasis is on guerrilla war. Kashmiri groups, however, use attacks on civilians to gain tactical advantages in their guerrilla war as well as for more traditional terrorist purposes such as undermining New Delhi's rule and defeating rivals within the opposition movement.