Pakistan and Afghanistan are at a critical juncture in their history. Islamic militancy has made rapid advances in these countries, and if unchecked, will gain control of them. Regional stability depends on two important conditions: external forces must vacate the region as soon as possible; yet, at the same time, they must not leave a power vacuum in Afghanistan and Pakistan. Islamabad needs a paradigm shift in its national security thinking. Above all, it needs to send clear signals to the Pakistani people and militants by sanctioning those who wage militancy, both within and outside the state. International pressure could help Islamabad to make this shift and its campaign against Islamic militancy must proceed unabated. No less urgent are governance issues that threaten stability in Baluchistan, where insurgency is an indigenous problem and requires political compromises for an effective response.