The crux of the problem as I see it, is our obsession with using non state actors to keep small fires lit in our neighborhood. Until the start 2000's we were dabbling inside western China with this policy!! This policy or methodology has not panned out positively for Pakistan on any of the borders. Kashmir....now firmly part of Indian Union. Afghanistan a mess that has backfired royally for us. Proxies inside Iran have not delivered if anything was to be delivered. In-fact now it has put GoP in an awkward position. China...well they put a stout piece of wood up our..... and that was the end of that story.
Deploying proxies and supporting them requires a solid long term objective, steadfastness, strong political and public support for the cause, economic and military muscle, and alignment with big power goals in that particular area of operations. Now even with all of this, proxies tend to go their own way when they start exerting influence in their are of operations. US has been at the receiving end of it many a times, and Pakistan too.
Pakistan has none of the above except in one instance, the first Afghan adventure. We should learn from our mistakes and move away from this strategy, it does not work and has not worked for us without the support of the lone superpower. Even China treads with care on this strategy given the myriad complexities in its operations. The nine sisters is a case in point on north east India.
It is high time that we hunker down and look inwards as a nation and do a self check on where we have gone wrong as a nation and what has destroyed our social fabric. Look towards the economy. Don't seek foreign investment but look towards creating and eco system that supports local investment in manufacturing, agri, power distribution and energy and services sectors. There is tons of money that Pakistanis can deploy which they have invested overseas if they feel that its worth their effort and their investments are safeguarded. The trust that was destroyed in the early 70's needs to be restored. This is where entities like SIFC should concentrate. Short term patchwork is not going to work now.
And we certainly need to desist from this proxy game. Hamaray bus ki baat nahee rahee ab ye khel.!!! We have suffered and are suffering.
I still remember when in 2001 one of my acquaintances who used to work for the state department mentioned that when he spoke to a veteran diplomat who had been stationed in New Delhi for a while said that Pakistan should resolve its issues with India on Kashmir soon otherwise India is fast approaching a position in the world pecking order where Pakistan would be threatened with surrendering its side of Kashmir down to Mari!!!
It is high time we took our heads out of our behinds and smell the air.... my apologies for the harsh words and tone.
My 2C worth