A significant divide appears to be growing between Pakistan's political leadership and jihadist groups, with the Pakistani army seemingly backing former Foreign Minister Bilawal Bhutto Zardari, according to top intelligence sources who spoke with CNN-News18. Bilawal's recent proposal to extradite designated terrorists Hafiz Saeed and Masood Azhar to India signals a shift within Pakistan’s political establishment, suggesting a broader consensus on this issue.

Bilawal’s stance challenges the Pakistani army’s longstanding policies on Kashmir and its ties with jihadist factions, who consider themselves strategic assets of the military rather than political pawns. Intelligence sources reveal that these jihadist groups view Bilawal’s extradition proposal as an act of betrayal. Pakistan’s political class, particularly the Pakistan People’s Party (PPP) led by Bilawal, is working to secure international legitimacy, especially to comply with Financial Action Task Force (FATF) mandates.

Sources also suggest that Bilawal has pointed to significant actions, such as dismantling over 900 jihadist groups, conducting asset seizures, and making arrests, to demonstrate Pakistan’s commitment to changing its approach. This strategy aligns with efforts to avoid penalties from the FATF and is backed by military support for these compliance measures. Bilawal’s diplomatic missions to Washington and London have presented the extradition of these terrorists as part of a broader discussion aimed at economic recovery.

Despite these moves, intelligence sources emphasize that groups like Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM) have long served as tools for plausible deniability in operations in Kashmir. However, events such as Operation Sindoor, which showcased India's ability to conduct deep strikes into Pakistan, have pressured the military to comply with FATF requirements, including dismantling LeT’s JuD network.

The unprecedented state crackdowns on jihadist groups in Pakistan, including asset seizures and arrests, are being seen as part of a larger effort to comply with international expectations. However, the Pakistani Tehreek-i-Insaaf (PTI) party’s condemnation of Bilawal Bhutto highlights the continued influence of jihadist sympathies within conservative circles. Intelligence sources warn that any attempt to extradite terrorists could provoke violent retaliation from sleeper cells.

As Pakistan’s FATF review in 2025 draws near, both the political and military establishments are under increasing pressure to take irreversible actions against terrorist groups. However, intelligence sources caution that Pakistan is unlikely to extradite key terror leaders. The resurgence of jihadist groups in Afghanistan poses a significant threat to Pakistan’s internal security, meaning groups like JeM may increasingly be seen as liabilities rather than assets for the state.