Pakistan has hostile neighbors with India on one side and Afghanistan on the other. The tension between the countries is promoting instability in the region. Pakistan, at its end, always tried its level best to improve relations with the neighboring countries but unfortunately reciprocated a non-serious attitude in response from India and Afghanistan. After the withdrawal of NATO forces from Afghanistan, the peace situation in the region became worse. The major regional stakeholders have urged the interim Afghan government to stop sponsoring terrorism. Pakistan is determined to eradicate the menace of terrorism from its soil. Afghanistan needs to understand that Pakistan hosted a record number of Afghan refugees for a record period of time i.e. over four decades. The government must encourage the youth of FATA and Balochistan to become a part of the national streamline and play a role in the development of the country. We need to provide quality education, medical facilities and technical training to the people of these areas in particular. Moreover, the government must initiate measures to cope with the challenge of poverty alleviation.