The international war on terror has caused more suffering, deaths and destruction to the people of Pakistan than of any other country in the world. Soon after the tragedy of September 11, 2001, Pakistan allied itself with the United States and the international community in the war against terror. The US-led invasion against the government of Taliban in Afghanistan commenced in 2001. The Talibans were defeated but could not be eliminated. Their resistance has now assumed the shape of an insurgency and an armed struggle against the foreign forces and their local supporters. During the last three decades (1978-2008), Afghanistan has been in a state of war: first against the Soviet Union, later amongst themselves, then against the Taliban government and, at present, against the Western forces. Pakistan has had to accommodate millions of refugees entering the country since 1978. In the beginning, their number had risen to about six million but even at present this is not less than 2.6 million. Since Pakistan is a major non- NATO ally and is supporting the war against the militants in Afghanistan, the Taliban insurgency has spilled over to the Federally Administered Tribal Areas (FATA), adjacent to Afghanistan, and is gradually threatening the adjoining settled areas of North West Frontier Province (NWFP) as well as causing sporadic acts of violence and terrorism in the rest of the country. The fight against militants during the past two years (2007-2008) alone has cost Pakistan over 1000 members of its law enforcement agencies (LEAs) and about 4000 civilians, besides injuring over 2000 members of LEAs and about 8000 others. As an impact of this war, terrorist activities are on the rise, the economy is sliding downward, the much-needed foreign investment is not forthcoming and the development of the country is being adversely affected. It is officially estimated that Pakistan has suffered a loss of about Rs. 678 billion during the last five years and as much as Rs. two to three trillion during the previous decade. Pakistan is likely to continue to suffer as long as there is no peace in Afghanistan. During the last three decades (1978-2008), Afghanistan has been in a state of war: first against the Soviet Union, later amongst themselves, then against the Taliban government and, at present, against the Western forces. Pakistan has had to accommodate millions of refugees entering the country since 1978. In the beginning, their number had risen to about six million but even at present this is not less than 2.6 million. Since Pakistan is a major non- NATO ally and is supporting the war against the militants in Afghanistan, the Taliban insurgency has spilled over to the Federally Administered Tribal Areas (FATA), adjacent to Afghanistan, and is gradually threatening the adjoining settled areas of North West Frontier Province (NWFP) as well as causing sporadic acts of violence and terrorism in the rest of the country.The fight against militants during the past two years (2007-2008) alone has cost Pakistan over 1000 members of its law enforcement agencies (LEAs) and about 4000 civilians, besides injuring over 2000 members of LEAs and about 8000 others. As an impact of this war, terrorist activities are on the rise, the economy is sliding downward, the much-needed foreign investment is not forthcoming and the development of the country is being adversely affected. It is officially estimated that Pakistan has suffered a loss of about Rs. 678 billion during the last five years and as much as Rs. two to three trillion during the previous decade. Pakistan is likely to continue to suffer as long as there is no peace in Afghanistan.