"They are not doing anything in Pakistan. They are doing jihad outside.”

Re: "They are not doing anything in Pakistan. They are doing jihad outside.”

Faisal

You are correct in everything and the most important point you make is:

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One would think that after successfully testing nuclear weapons, the need (and financial burden that comes with it) of conventional military forces will go down (not eliminate, of course); but no such luck
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After India stupidly made South Asia overtly nuclear, most people in our region would have hoped for the excess military spending to be curtailed and a period of stability.

That did not work because some dominant low-IQ Generals in GHQ assumed that nuclear weapons gave Pakistan a free pass to launch conventional ops. That led to Kargil and the threat of nuclear escalation forced Americans to act and we gained the reputation of a rogue state. Since then, GHQ has played hot and cold with the jihadi "option" but the preservation of the option risks unintended conflicts from events like the Mumbai attack.