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On July 9, 2025, the Nepal Institute for International Cooperation and Engagement (NIICE) convened a strategically vital seminar in Kathmandu titled “Terrorism in South Asia: Challenges to Regional Peace and Security.”
In an era marked by asymmetric threats, the seminar brought together over 150 political leaders, diplomats, security experts and academics to confront the escalating menace of terrorism, particularly the operations of Pakistan-based outfits like Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM).
With Nepal’s porous border with India increasingly exploited as a transit corridor, participants stressed that regional vulnerabilities demand unified responses. The discussions highlighted the strategic necessity of real-time intelligence sharing, joint border management and dismantling terror financing networks. The seminar marked a critical step toward formulating a collective South Asian counterterrorism doctrine to safeguard peace and regional order.
The seminar further emphasised Nepal’s increasing vulnerability as a transit hub for terrorism, citing the 1999 IC-814 hijacking and the April 2025 Pahalgam attack that killed a Nepali national. Strategic consensus emerged on the urgent need for India-Nepal intelligence collaboration, joint border control and unified regional action. Participants warned that terrorism undermines SAARC, economic integration, and regional peace, demanding a zero-tolerance policy and dismantling of terror financing and safe havens across South Asia.
Pakistan’s ISI Exploitation of Nepal: A Historical and Ongoing Threat
Pakistan’s Inter-Services Intelligence (ISI) has, for decades, strategically exploited Nepal’s geographic and political landscape to facilitate anti-India terror activities. Historical records, including declassified United States cables and intelligence reports, reveal that in the 1980s and 1990s, ISI supplied explosives such as RDX and arms via Kathmandu to terrorist fronts like the Jammu and Kashmir Islamic Front (JKIF). These entities were instrumental in orchestrating bombings in Indian cities, including during critical electoral cycles.
The use of diplomatic cover, Pakistan International Airlines (PIA) routes and fake currency smuggling further enabled ISI operations to remain concealed while funding violent extremism inside India. Such state-sponsored tactics severely undermined regional security and trust between neighbours.
In addition to logistical and financial facilitation, ISI also infiltrated Nepal’s socio-religious networks by channelling funds through Islamic charities and madrassas in the Terai region. Organisations like Jamaat-e-Milli-e-Islamia (JMI) and Nepal Islamic Yuva Sangh were allegedly co-opted to support radical Islamist narratives and provide local support infrastructure to terror groups such as LeT and JeM.
India-Nepal Counterterrorism Cooperation: A Strategic Imperative for Regional Stability
Evidence also points to tactical coordination with Maoist and Naxalite insurgents along the Indo-Nepal border, revealing a convergence of ideological extremism and state-sponsored terrorism. Recent warnings by Nepalese and Indian officials, reiterated at security forums in Kathmandu, highlight that these legacy networks continue to pose a transnational threat. Nepal’s continued use as a transit and operational base reinforces the urgent need for joint India-Nepal counterterrorism frameworks, intelligence sharing and regional de-radicalisation efforts to dismantle Pakistan’s covert terror infrastructure.
Over the past decades, Nepal has inadvertently become a strategic conduit for Pakistan-backed terrorism targeting India. Its open, poorly monitored border and limited counterterror capabilities have enabled ISI-linked networks to exploit Nepal as a transit hub for arms smuggling, terror financing, and infiltration. In the 1990s, ISI operatives used Kathmandu to channel RDX and fake Indian currency for attacks in major Indian cities.
Radical groups like Lashkar-e-Taiba and Jaish-e-Mohammed reportedly leveraged Nepal-based madrassas and charities for ideological indoctrination and recruitment. The 1999 IC-814 hijacking and recent intelligence inputs reaffirm Nepal’s role as a logistical corridor for anti-India operations. These patterns demand urgent joint surveillance, de-radicalisation efforts and Indo-Nepal counterterrorism integration to neutralise growing asymmetric threats.
Operation Sindoor stands as a landmark achievement for India, showcasing precision, coordination and resolve in neutralising cross-border terror threats. Executed with surgical efficiency, the operation dismantled a Pakistan-backed terror module responsible for the Pahalgam attack that killed civilians, including a Nepali national.
It demonstrated India’s advanced counterterror capabilities, intelligence prowess and commitment to justice. Operation Sindoor sent a powerful message globally, highlighting the importance of swift, targeted responses to terrorism. By combining real-time intelligence, special forces and diplomatic clarity, India has set a new counterterrorism benchmark, inspiring regional partners to adopt decisive action against transnational terror networks.
Participants at the seminar emphatically emphasised that the global fight against terrorism requires unwavering consistency rather than selective condemnation. They pointed out that many countries practice double standards- denouncing terrorism only when it directly impacts them, while covertly supporting or ignoring it when it serves their geopolitical agendas. This dangerous hypocrisy empowers state-sponsored terror networks, such as Pakistan’s ISI, and severely undermines international cooperation.
The seminar’s experts advocated for a zero-tolerance stance against all forms of terrorism, irrespective of ideology, origin, or target. They emphasised the urgent need for uniform legal, diplomatic and financial measures worldwide, warning that failure to act impartially equates to tacit support for global insecurity and violence.
The seminar stressed that India-Nepal cooperation is strategically vital to confronting terrorism that threatens regional stability and peace. Strengthening intelligence sharing, joint border security, and coordinated counterterrorism operations are imperative to halt the exploitation of porous borders by terrorist networks.
This enhanced collaboration is not only critical for neutralising immediate threats but also essential for rebuilding mutual trust and securing a stable environment conducive to economic growth and regional integration.
Failure to act collectively risks prolonged insecurity, undermining initiatives like SAARC and hampering sustainable development across South Asia. A unified, proactive security framework between India and Nepal is thus a strategic necessity, pivotal to safeguarding national interests, fostering regional resilience and advancing broader socio-economic objectives amid evolving asymmetric threats.
