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The arrest of Kulbshan Yadhav, an Indian spy added fuel to the already boiling relationship between India and Pakistan. India refutes the allegation of creating instability in Pakistan while terming the confessional statement by Kalboshan as a fabricated propaganda by Pakistan. On the other hand, Pakistan considers Yadhav’ arrest as a big achievement against India that has exposed the nefarious Indian face behind creating instability and uncertainty in Pakistan. The counter allegation between India and Pakistan of carrying out terrorist activities on each other’s soil continues to derail the peace process between both the countries. However, the cooperation between the two states can help them to curb the menace of terrorism together while giving them opportunity to have the maximum benefit of the regional alliances like CPEC.