Indo-Afghan Proxy War: Threat to US South and Central Asian Interests

June 29, 2026 at 2:27 PM
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Bashir Ali

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US is increasingly overlooking a serious security challenge in South Asia as anti-Pakistan terrorist organizations and proxy networks continue to use Afghan territory to destabilize Pakistan’s western regions.

This instability directly undermines several long-term US strategic, economic and geopolitical objectives in South Asia, Central Asia and the broader Eurasian region.

By turning a blind eye to these developments US risks ceding strategic space to China while weakening prospects for regional connectivity, economic integration and counterterrorism cooperation.

Pakistan’s western provinces particularly Balochistan possess significant untapped reserves of copper, gold, rare elements and minerals critical for modern technologies and energy transitions.

Balochistan accounts for approximately 55% of Pakistan’s total mineral-rich outcrop area and hosts more than half of the country’s discovered mineral resources. Reko Diq deposit alone contains an estimated 5.9 billion tons of ore including over 13 million tons of copper and nearly 18-21 million ounces of gold making it one of the largest undeveloped copper-gold deposits globally.

US and its allies increasingly require diversified sources of critical minerals to reduce dependence on China. While Pakistan lacks the financial and technological capacity to fully exploit these resources independently. Large-scale foreign investment is therefore essential for exploration and extraction along with processing and transportation.

International investors require security, political stability and predictable environment to operate in this area. However terrorist attacks and insurgent violence in Balochistan deter Western investment and increase project costs. Continued instability effectively closes off opportunities for American companies while allowing competitors to dominate the market. A destabilized Balochistan reduces future American access to strategic minerals and weakens efforts to diversify global supply chains.

Similarly, Central Asian Republics (CARs) are actively seeking alternatives to excessive dependence on Russia. These states increasingly desire diversified trade routes to access global markets to gain greater strategic autonomy.

The most practical southern corridors connect Central Asia to Arabian Sea ports, West Asia and European markets. Pakistan represents a natural gateway for such connectivity but regional transport projects require a secure Pakistan-Afghanistan environment.

Persistent terrorism and instability discourage infrastructure investment and delay connectivity initiatives. Destabilization prevents the emergence of trade corridors that could reduce Russian influence and integrate Central Asia into broader international markets.

Security threats compel Pakistan to seek external support. China has increasingly stepped into this role by providing not only security assistance but expanding intelligence cooperation, supporting infrastructure protection and investing in surveillance capabilities.

Every major terrorist incident targeting strategic projects creates additional demand for Chinese security involvement.

As insecurity grows Chinese influence expands correspondingly. China is steadily building intelligence networks, security partnerships and strategic leverage. The vacuum left by limited US engagement is being filled by Beijing.

Rather than constraining China regional instability accelerates Chinese strategic penetration into South Asia and Central Asia.

US invested enormous resources over two decades combating terrorism in Afghanistan. Still several militant organizations continue to operate from Afghan territory. These groups exploit weak governance, porous borders and limited enforcement capacity.

Attacks against Pakistan weaken a key regional state that has historically played an important role in counterterrorism efforts.

Terrorist ecosystems rarely remain geographically confined. Networks involved in anti-Pakistan violence can evolve into broader regional and transnational threats. Failure to address terrorist sanctuaries risks reversing gains achieved during the global war on terror.

US should recognize that efforts aimed at destabilizing Pakistan and disrupting strategic economic projects such as CPEC may ultimately undermine broader American interests rather than China’s alone.

While India may view instability in Pakistan’s western regions as a means to constrain Pakistan and challenge Chinese investments the resulting insecurity also discourages Western investment, obstructs regional connectivity and limits future American access to critical mineral resources.

US should revive structured intelligence sharing mechanisms with Pakistan similar to those employed during the War on Terror enabling real-time cooperation against transnational terrorist networks operating in the Afghanistan-Pakistan region.

S should consider equipping Pakistan with advanced counterterrorism enablers including surveillance and strike drones, Black Hawk helicopters, AC-130 gunships, signals intelligence and communication interception capabilities and AI-driven intelligence fusion systems to enhance its capacity to detect, monitor and neutralize terrorist threats while safeguarding critical economic and strategic assets.

A stable South and Central Asia would facilitate trade integration, energy corridors, infrastructure connectivity and cross-border investment.

Persistent conflict instead creates fragmented markets, higher transaction costs and security driven economic isolation which creates further problems for the regions. Such fragmentation benefits powers seeking exclusive spheres of influence.

Economic insecurity discourages Western companies while encouraging actors willing to operate under higher risk conditions. Continued instability limits American economic engagement and reduces opportunities for Western investment.

Sustainable peace requires preventing Afghan territory from being used against any neighboring country. Allowing Afghanistan to function as a platform for proxy competition undermines efforts to achieve lasting regional stability.

A renewed Pak-US security framework focused on counterterrorism, intelligence fusion, border management, terrorist financing investigations and technological modernization would help neutralize emerging threats, strengthen regional stability and prevent extremist groups from exploiting ungoverned spaces to undermine broader US strategic interests in South and Central Asia.

Enhanced cooperation would strengthen a frontline state’s capacity to counter terrorist threats while improving American situational awareness.

Given its significant diplomatic and economic leverage US should press the Taliban regime to dismantle terrorist safe havens, deny operational space to militant groups and cooperate against transnational terrorism thereby advancing regional stability and protecting long term US security interests.

Militant organizations often rely on international political, financial and propaganda networks. Some leaders and activists linked to violent movements operate from foreign jurisdictions.

US should work with partners in Europe, UK and other allied states. Cooperation should focus on terror financing, monitoring extremist networks, preventing abuse of asylum and political platforms for violent agendas and strengthening extremist networks. Reducing external support networks would weaken militant organizations and enhance regional security.

Stability in Pakistan is not merely a Pakistani interest it is increasingly a strategic American interest.

Persistent proxy conflict and terrorism in Pakistan’s western regions undermine US objectives related to critical minerals, Central Asian connectivity, counterterrorism, economic integration and competition with China.

By taking a more active approach toward regional security, revitalizing counterterrorism cooperation with Pakistan and discouraging the use of Afghan territory for proxy warfare US can better protect its long-term geopolitical and economic interests in South and Central Asia.

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