Nawaz Sharif has billed the economic revival of Pakistan as the top priority of his government after it takes office. He wants to mould Pakistan’s foreign policy to match this objective. Nawaz Sharif has clearly indicated that he wants good relations with India. He sent out similar messages to the US, offering full cooperation in facilitating a peaceful withdrawal from Afghanistan. However, wresting control of the foreign policy from the military and dealing with the militant groups within Pakistan, long patronized by the state to achieve foreign policy objectives, will present a major challenge for the new government. Pakistan’s foreign policy cannot be reoriented without dealing with the question of domestic and regional terrorism. Some of the militant groups that were used by the security establishment to hurt India in Kashmir and to manoeuvre the situation in Afghanistan have now rebelled against the Pakistani state. Domestic terrorism, which has been one of the major causes of a steep decline in the economy, is deeply connected to regional terrorism. It is the same conglomerate of militant groups that are involved in domestic and foreign attacks. Pakistan cannot have good relations with India while also hosting these groups on its soil. These groups have repeatedly tried to derail the India-Pakistan peace process started by the Musharraf government in 2004, the worst example of which was the 2008 Mumbai attacks, which have been linked to the Pakistan-based group Lashkar-e-Taiba (LeT). For its proposed foreign and economic policies to succeed, the PML-N government will have to take tough decisions regarding militant groups. Nawaz Sharif’s interest in good relations with India might have caused unease in the military, which has remained in charge of the security and foreign policies for decades, and regards India as the enemy. However, given the circumstances, Pakistan has no choice but to make peace with its neighbours. It is imperative for Pakistan’s economic revival to end hostilities with India and benefit from its economic rise, which Pakistan failed to do in the case of China due to its internal weaknesses. Investing in economic relations with India will pave the way for resolving some of the more complex issues, such as Siachen and Kashmir. That India is ready to work with the new government in Pakistan is clear from the statement of Dr Manmohan Singh, who greeted Nawaz Sharif on his victory and invited him to visit India. It is hoped that the PML-N and the military leadership will develop a healthy working relationship and reorient Pakistan’s foreign and security policies with the goal of peace and economic prosperity in Pakistan and the region. This goal is linked to peace in Afghanistan. Enduring peace in Afghanistan requires cooperation among all regional countries as well as the US. Pakistan’s relations with the US suffered considerably after the US operation in Abbottabad to take out Osama bin Laden, the killing of 24 Pakistani soldiers at Salala check post by NATO fire, and the subsequent closing of NATO’s supply routes through Pakistan. The US drone campaign in FATA is another sore point in relations. Although Nawaz Sharif wants good relations with the US, it will require considerable skill in persuading the US to stop the drone strikes, which are causing collateral damage on the ground as well as political damage to the government in Pakistan. Nawaz Sharif will be walking a tight rope while negotiating his foreign policy, which is inextricably linked to Pakistan’s domestic policies. He will need to build public opinion for peace with India, good relations with the US, and an end to militancy. He can rely on the support of the international community as well as the trade and business community in Pakistan, which warmly greeted his victory. The Karachi Stock Exchange crossed the 20,000 mark for the first time after Nawaz Sharif’s win. He must capitalise on this atmosphere of goodwill and make use of these expressions of support to create a foreign policy that is in Pakistan’s best interests. *