CIA papers on Punjab: What U.S. knew about Pak’s proxy war

By: Abhinandan Mishra
Last Updated: July 12, 2026 01:49:44 IST

Declassified CIA assessments prepared during the Punjab insurgency reveal that American intelligence believed Pakistan was providing calibrated support to Sikh extremists. Simultaneously, they identified the central ingredients required for India to succeed against Khalistanis.

For decades, the story of Punjab’s insurgency has largely been told through Indian government records, police memoirs, political accounts and judicial proceedings. The conflict has been analysed from almost every possible perspective. Yet one important set of contemporary assessments remained largely outside the public discourse: what the Central Intelligence Agency (CIA) believed while the insurgency was still raging.

A declassified CIA research paper titled “India and the Sikh Challenge” (CIA-RDP88T00096R000500600011-0), prepared by the agency’s Directorate of Intelligence in early 1987, provides one of the most detailed contemporaneous foreign intelligence assessments of the Punjab crisis. Rather than serving as a historical reconstruction, the report attempted to answer questions confronting American policymakers at the time: How serious was the insurgency? Was Pakistan actively supporting Sikh extremists? Could India defeat the movement? And what consequences would prolonged instability have for South Asia?

Its conclusions are striking not because they validate every Indian allegation, but because they paint a nuanced picture that differs from both official Indian narratives and Pakistani denials.

The CIA concluded that India had succeeded in slowing the growth of the insurgency but had not yet broken it. Despite several successful security operations, Sikh extremists retained the ability to sustain violence through targeted assassinations, bombings and intimidation. The agency warned that unless New Delhi addressed both the security and political dimensions of the crisis, Punjab could face a prolonged period of instability.

The report’s assessment of Pakistan is equally revealing. By 1987, American intelligence believed Pakistan was “most likely training small numbers of Sikh extremists” and permitting them to use Pakistani territory as a sanctuary. At the same time, the CIA assessed that Islamabad was unlikely to dramatically expand its support because President General Zia-ul-Haq remained conscious that overt involvement could damage Pakistan’s improving relationship with Washington during the Soviet-Afghan war.

In other words, the agency believed Pakistan sought to exert pressure on India while carefully avoiding actions that could trigger a larger confrontation or jeopardise its strategic value to the United States.

That distinction is important. The CIA did not portray Pakistan as directing every aspect of the insurgency. Instead, it described what amounted to calibrated support, sufficient to keep the movement alive without inviting unacceptable international costs.

The agency also examined the organisations operating inside Punjab. It identified the All India Sikh Students Federation and the Damdami Taksal as the principal extremist groups, noting that they had become increasingly organised and better armed. The report stated that these organisations probably received some assistance from Pakistan and that members were believed to have travelled across the border for training. It also referred to diplomatic and intelligence reporting suggesting that elements of Pakistan’s Inter-Services Intelligence were involved in facilitating support for Sikh extremists.

Perhaps the report’s most overlooked contribution is in its analysis of what it called the “Sikh International Network.” Long before global terrorism financing became a dominant security concern, the CIA devoted an entire section to the overseas ecosystem sustaining the Punjab insurgency. According to the assessment, Sikh organisations in Britain, Canada and the United States had developed extensive fundraising and propaganda networks that generated financial support for extremist groups operating in Punjab. These organisations lobbied foreign governments, organised demonstrations, circulated literature and, according to the report, in some cases helped procure weapons and equipment destined for India.

The report also explained why Punjab mattered to Washington.

During the late 1980s, Pakistan was America’s principal ally in supporting the Afghan resistance against Soviet forces. India remained the dominant regional power and an important actor in South Asia. A prolonged insurgency in Punjab therefore carried implications well beyond India’s domestic politics. American policymakers were concerned that escalating violence could destabilise the region, complicate relations between India and Pakistan and increase the risk of a broader military confrontation.

Yet the most remarkable aspect of the CIA paper is that almost half of it focuses not on Pakistan, but on India’s response.

American analysts believed New Delhi was gradually abandoning the idea that the insurgency could be defeated through military force alone. Instead, they argued that the government’s strategy rested on two parallel pillars: politically isolating extremists by strengthening moderate Akali leadership while simultaneously expanding intelligence operations, strengthening the Punjab Police, tightening border controls and increasing pressure on militant organisations.

The report devoted unusual attention to one individual.

Julio Ribeiro had assumed charge as Director General of Police at a time when Punjab’s police force had become one of the insurgency’s principal targets. Police officers were routinely assassinated, stations attacked and morale had deteriorated sharply. The CIA described Ribeiro as a “supercop” whose appointment marked a significant change in New Delhi’s approach. According to the assessment, his strategy combined more aggressive policing with expanded intelligence gathering, greater coordination among security agencies and stronger efforts to prevent infiltration across the international border.

More importantly, the agency observed that these measures were already producing results.

It noted that sustained police pressure was beginning to create distrust within militant organisations, encouraging defections and making it increasingly difficult for extremist leaders to operate freely. The report concluded that intelligence penetration, rather than conventional military operations, was emerging as the state’s most effective weapon against the insurgency.

The CIA also recognised the political risks confronting Rajiv Gandhi’s government.

Excessive force, it warned, could alienate ordinary Sikhs and strengthen extremist propaganda. Conversely, failure to maintain pressure on militants risked allowing the insurgency to expand further. The government’s challenge, according to the assessment, lay in balancing firm security operations with political outreach to moderate Sikh leadership.

In retrospect, that assessment proved remarkably prescient. Over the next six years, India would build precisely the kind of intelligence-driven counter-insurgency apparatus that the CIA believed offered the best prospect of success. Under Julio Ribeiro and later K.P.S. Gill, Punjab Police transformed from a defensive force into one of the country’s most effective intelligence-led policing organisations. The methods employed would eventually dismantle organised militancy, but they would also leave behind one of the most enduring debates in independent India over the balance between national security and civil liberties.

If the CIA correctly identified the broad contours of the insurgency in 1987, the years that followed would demonstrate whether New Delhi’s strategy could actually defeat it.

The Agency had argued that Punjab’s crisis could not be resolved through military force alone. It believed success depended on isolating extremists politically, expanding intelligence networks, strengthening the Punjab Police and preventing militants from replenishing men and weapons through Pakistan. Those observations were made nearly six years before organised militancy finally collapsed.

What followed was one of the most extensive intelligence-led counter-insurgency campaigns undertaken in independent India.

INTELLIGENCE-DRIVEN COUNTER-INSURGENCY CAMPAIGNS

The transformation began under Julio Ribeiro but reached its decisive phase under Director General of Police Kanwar Pal Singh Gill. Gill inherited a security environment in which militant organisations had established extensive rural networks, safe houses and support structures across border districts. Rather than relying primarily on large military deployments, he sought to dismantle the insurgency’s organisational architecture.

His central premise was simple: insurgencies survive because of intelligence, logistics and leadership. Destroy those three pillars and armed groups eventually collapse.

This philosophy marked a significant departure from earlier approaches. Police operations increasingly shifted from responding to attacks to proactively identifying militant leadership, intercepting couriers, penetrating underground networks and disrupting financial support. Intelligence, rather than numbers, became the decisive instrument.

The campaign’s first major psychological breakthrough came during Operation Black Thunder II in May 1988.

Four years after Operation Blue Star, Khalistani terrorists had once again occupied the Golden Temple complex. Unlike 1984, however, security planners deliberately avoided a frontal assault. The complex was surrounded, escape routes were sealed and security forces established dominating positions around the perimeter. Food, water and movement were tightly controlled while journalists were allowed unprecedented access to cover the operation.

The images that emerged transformed public perceptions. Instead of dramatic last stands, television viewers watched armed militants gradually surrender after days of isolation. More than one hundred terrorists eventually laid down their weapons. The operation demonstrated that the state could regain control of the shrine without repeating the extensive damage associated with Operation Blue Star. Equally important, it punctured the aura of invincibility surrounding several militant organisations and marked a major psychological setback for the insurgency.

The campaign then moved into an even more intelligence-intensive phase.

Perhaps the most innovative development was the use of surrendered terrorists as intelligence assets. Popularly known as “Cats”, these former insurgents possessed intimate knowledge of command structures, hideouts, weapons caches and courier routes. Some were appointed as Special Police Officers, while others worked confidentially with police teams.

Former Punjab Police officers have consistently argued that this intelligence penetration proved decisive. It enabled strike teams to locate underground shelters, identify senior commanders and map networks that had previously remained invisible to conventional policing. Rather than conducting broad sweeps through villages, police increasingly launched targeted operations based on precise intelligence.

BORDER MANAGEMENT

Border management simultaneously became a crucial component of the strategy.

The Army, Border Security Force and other Central forces intensified surveillance along the international border, making infiltration and weapons smuggling progressively more difficult. The Punjab Police, meanwhile, concentrated on dismantling Khalistani infrastructure within the state. The division of responsibilities reflected almost exactly the broad direction anticipated in the CIA assessment, which had argued that tighter border security and stronger intelligence coordination were essential if New Delhi hoped to reverse the insurgency.

POLITICAL DEVELOPMENTS

Political developments also altered the course of the conflict.

One of the least understood episodes concerns developments across the border following General Zia-ul-Haq’s death in August 1988. Benazir Bhutto assumed office promising to improve Pakistan’s relations with India after years of military rule.

According to later historical accounts, including a retrospective published by Pakistan’s Dawn newspaper, Bhutto rejected proposals to continue using the Khalistan issue as an instrument of policy against India. The account further states that she later gathered information relating to Sikh militants and reportedly conveyed it to Prime Minister Rajiv Gandhi through a special emissary in an effort to improve bilateral relations.

Neither the Government of India nor the Government of Pakistan has publicly released official records conclusively confirming the reported intelligence transfer. Consequently, the episode remains an important but contested chapter in the history of India-Pakistan relations. Even so, it has endured in strategic literature because it suggested a rare divergence between Pakistan’s elected civilian leadership and sections of its military establishment over policy towards India.

COLLAPSE OF KHALISTANI MILITANCY

Back in Punjab, the insurgency had begun to fracture under relentless operational pressure.

Khalistani leaders were increasingly forced into hiding. Communications became more difficult as intelligence networks expanded steadily. The combination of targeted policing, improved border management and sustained political backing gradually reduced the operational space available to extremist organisations.

The election of Beant Singh as Chief Minister in 1992 provided the political clarity that security agencies had long sought. His government backed an uncompromising campaign against the remaining armed groups, giving Punjab Police broad operational support while maintaining close coordination with Central security agencies.

By then, many of the insurgency’s most prominent leaders had been killed, arrested or forced to flee. Recruitment declined sharply as public fatigue with years of violence deepened. Villages that had once served as militant strongholds increasingly began cooperating with security agencies, depriving extremist organisations of local support and intelligence.

By the end of 1993, organised militancy in Punjab had largely collapsed.

Yet the campaign’s success came at a profound institutional cost. CM Beant Singh was assassinated in August 1995 by Khalistani terrorists. Separately, human rights organisations documented allegations of extrajudicial killings, custodial torture, enforced disappearances and illegal detention during the final phase of the counter-insurgency campaign. The Terrorist and Disruptive Activities (Prevention) Act substantially expanded police powers and became a focal point of criticism from civil liberties organisations.

No figure better symbolises this debate than Jaswant Singh Khalra, the human rights activist who investigated thousands of alleged illegal cremations in Punjab. Khalra disappeared in 1995 and was later found to have been abducted and murdered. Years afterwards, Indian courts convicted several police personnel for their role in the crime.

RELEVANCE OF DECLASSIFIED CIA PAPERS

This dual legacy continues to define scholarly and policy debates on Punjab.

Many security professionals regard the campaign as one of India’s most successful counter-insurgency operations because it restored the authority of the state and ended organised militant violence. Human rights groups, however, argue that the methods employed in achieving that objective often crossed constitutional and legal boundaries.

That tension is precisely what gives the declassified CIA papers their enduring relevance.

The documents were never intended as public history. They were classified intelligence assessments written for policymakers in Washington during one of South Asia’s most volatile periods. Decades later, they provide an unusually independent contemporaneous record of how an outside intelligence agency assessed Pakistan’s role, the international ecosystem sustaining Sikh militancy and New Delhi’s evolving response.

They also reveal something more striking. Long before the insurgency was defeated, American analysts had identified the central ingredients required for success: political management, intelligence penetration, stronger policing, tighter border control and sustained pressure on militant leadership.

History ultimately unfolded in much the way the CIA believed it might.

The Khalistani insurgency was not defeated by a single military operation or one decisive encounter. It was gradually dismantled through years of intelligence-led policing, political resolve, coordinated action by multiple security agencies and the systematic erosion of militant leadership and support networks.

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