Against all odds, Iran is pressing hard to prove its nuclear innocence and keeping its promises under the provisions of the Nuclear Non- Proliferation Treaty (NPT). The US is refusing to go along with Iran’s denials on violation of the NPT commitments. At the same time, the Bush Administration seems determined to stop the spread of nuclear weapons beyond Pakistan to other Muslim states. However, the facts emerging out of the probe into the A.Q. Khan episode and the international grey nuclear market indicate significant patterns of concealment and duplicity even by the NPT signatory states.

Any study of political developments in Pakistan cannot be complete without examining the role of the Army. Though it might seem incompatible to talk of military and democracy in the same breadth, Pakistan provides an example of how the military has been able to govern the country as successfully as a civilian government. It has its own view of democracy, political stability and governance. It feels it has a political role which stems from the national security paradigm of the state.

After six years, in June 2004 India and Pakistan resumed the composite dialogue process that covers eight baskets of issues agreed upon in Male in 1997 between Prime Minister Inder Kumar Gujral and Nawaz Sharif. The eight baskets are Jammu and Kashmir; Siachen; Wullar Barrage/Tulbul Navigation Project; Sir Creek; Terrorism and Drug Trafficking; Economic and Commercial Cooperation; Peace and Security; and Promotion of Friendly Exchanges in various fields. The last round of talks was held in October 1998 in Islamabad, on Peace and Security, CBMs and Jammu and Kashmir.

The sectarian divide between the Sunnis and Shias in Pakistan has widened since the 1980s. The rising tide of sectarian violence during Musharraf’s rule (October 1999-till date), in spite of bans and restrictions imposed on sectarian outfits and elements by the administration, suggests that the two sects have drifted further apart.

The essay defines Pakistan’s brazen retailing of sensitive nuclear technologies as Bomb Process Outsourcing (BPO) and places it in a larger perspective. It offers a short retrospective of the development and manufacture of nuclear weapons by the P-5 in which significant manpower and materials were ‘foreign’. This is true of the programmes of Israel, Iraq, South Africa, Argentina and Brazil as well. Pakistan, has now, contributed to North Korea, Libya and Iran.

Pakistan’s political climate has always been polarized between the civil and the military leaders, with balance of political fortunes tilting in favour of one or the other, from time to time. With the overthrow of Nawaz Sharif in a bloodless coup in October 1999, the military marched out of the barracks after more than a decade.

American security policy towards South Asia can basically be divided into three stages: balance of power in the Cold War era, beyond balance of power after the end of Cold War, and new balance of power after September 11.

The debate on the rationale for Pakistan's possession of nuclear weapons, the concept of nuclear deterrence and the security of Pakistan has been intertwined. Many Pakistani defence analysts see both deterrence and security as synonymous. This paper analyses Pakistan's nuclear strategy in the context of first, its threat perception, second, its plan to achieve parity with India and third, its objective after the tests to portray Kashmir as a nuclear flashpoint to persuade the world community's indulgence and intervention to resolve the issue.