The terrorist act of September 11, 2001, brought a revolutionary change in the international security paradigm. As the countries tried to adjust to the new security environment, the war against terror brought war closer to south Asia. Pakistan emerged as the frontline state in this war yet again and its foreign policy towards its two important neighbours, India and Afghanistan, underwent a strategic shift. It was quick to disown the Taliban. Its dilemmas were perceptible when it was confronted with the issue of dealing with terrorism in Kashmir. With international pressure mounting, Pakistan brought in some shift in its Kashmir policy.