This report examines the November 26, 2008 terrorist attack on Mumbai, India that left 174 people dead and hundreds more injured. The report assesses the resulting tension between India and Pakistan, due to possible links between the attackers and the Lashkar-e-Taiba terrorist group, who are believed to have past ties with Pakistan's military and intelligence services. The report also examines the implications of the attack on U.S. foreign policy.

Pakistan is a strategically important country and home to one of the world’s largest Muslim populations. In October 1999, Pakistan’s Chief of Army Staff Gen. Pervez Musharraf replaced Prime Minister Nawaz Sharif in a bloodless coup. Following the military overthrow of an elected government, Islamabad faced considerable international opprobrium and was subjected to automatic coup-related U.S. sanctions. The September 2001 terrorist attacks on the United States and Musharraf’s ensuing withdrawal of support for the Afghan Taliban regime, however, had the effect of greatly reducing Pakistan’s international isolation. Congress temporarily removed restrictions, and large-scale U.S. aid to the country resumed, in late 2001. The United States views Pakistan as a vital ally in the international antiterrorism coalition.