The paper reflects on Pakistan's complex security situation and the causes of current challenges that Pakistan is facing due to vacillating foreign policies. It also reviews the role of factors that contributed towards the instability of the country. After Soviet invasion of Afghanistan, Pakistan involved in a proxy war and trained Mujahideen to liberate Afghanistan. In 1980's sectarianism floored the state, and since it has rooted in Pakistani society. The country brokered several Post-Soviet peace agreements between different militaristic groups in Afghanistan but in vain. Finally, it recognized Taliban for the cause of peace (though temporary) on its Western border. After 9/11 the country had to reluctantly take a "U" turn on its Afghan policy under immense US pressure. This swing of policy opened a Pandora-box for the country i.e. terrorism, Jihadist, ethnicity, sectarianism, economic and political instability in Pakistan. In this state of affairs corruption, deteriorating law and order situation, political instability and economic fragility, variables of internal security, act as key factors in a peaceful solution of conflicts.