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This is a good article about Pakistan and how they are involved in Jihad. this is only a small part of the report.

http://ksghome.harvard.edu/~jstern/pakistan.htm

JIHAD INTERNATIONAL, INC.
If madrasahs supply the labor for "jihad," then wealthy Pakistanis and Arabs around the world supply the capital.
On Eid-ul-Azha, the second most important Muslim holiday of the year, anyone who can afford to sacrifices an
animal and gives the hide to charity. Pakistani militant groups solicit such hide donations, which they describe
as a significant source of funding for their activities in Kashmir.
Most of the militant groups' funding, however, comes in the form of anonymous donations sent directly to their
bank accounts. Lashkar-i-Taiba ("Army of the Pure"), a rapidly growing Ahle Hadith (Wahhabi) group, raises
funds on the Internet. Lashkar and its parent organization, Markaz ad-Da'wa Wal Irshad (Center for Islamic
Invitation and Guidance), have raised so much money, mostly from sympathetic Wahhabis in Saudi Arabia, that
they are reportedly planning to open their own bank.
Individual "mujahideen" also benefit financially from this generous funding. They are in this for the loot, explains
Ahmed Rashid, a prominent Pakistani journalist. One mid-level manager of Lashkar told me he earns 15,000
rupees a month -- more than seven times what the average Pakistani makes, according to the World Bank. Top
leaders of militant groups earn much more; one leader took me to see his mansion, which was staffed by
servants and filled with expensive furniture. Operatives receive smaller salaries but win bonuses for successful
missions. Such earnings are particularly attractive in a country with a 40 percent official poverty rate, according
to Pakistani government statistics.
The United States and Saudi Arabia funneled some $3.5 billion into Afghanistan and Pakistan during the Afghan
war, according to Milt Bearden, CIA station chief in Pakistan from 1986 to 1989. "Jihad," along with guns and
drugs, became the most important business in the region. The business of "jihad" -- what the late scholar Eqbal
Ahmad dubbed "Jihad International, Inc." -- continues to attract foreign investors, mostly wealthy Arabs in the
Persian Gulf region and members of the Pakistani diaspora. (As World Bank economist Paul Collier observes,
diaspora populations often prolong ethnic and religious conflicts by contributing not only capital but also
extremist rhetoric, since the fervor of the locals is undoubtedly held in check by the prospect of losing their own
sons.)
As the so-called jihad movement continues to acquire its own financial momentum, it will become increasingly
difficult for Pakistan to shut down, if and when it tries. As long as "Jihad International, Inc." is profitable, those
with financial interests in the war will work to prolong it. And the longer the war in Kashmir lasts, the more
entrenched these interests will become.
ADDICTED TO JIHAD
As some irregulars are financially dependent on what they consider jihad, others are spiritually and
psychologically so. Many irregulars who fought in Afghanistan are now fighting in Kashmir and are likely to
continue looking for new "jihads" to fight -- even against Pakistan itself. Khalil, who has been a "mujahid" for 19
years and can no longer imagine another life, told me, "A person addicted to heroin can get off it if he really
tries, but a mujahid cannot leave the jihad. I am spiritually addicted to jihad." Another Harkat operative told me,
We won't stop -- even if India gave us Kashmir. ... We'll [also] bring jihad here. There is already a movement
here to make Pakistan a pure Islamic state. Many preach Islam, but most of them don't know what it means. We
want to see a Taliban-style regime here.
Aspirations like these are common among the irregulars I have interviewed over the last couple of years.
The "jihad" movement is also developing a spiritual momentum linked to its financial one. Madrasahs often teach
their students that jihad -- or, in the extremist schools, terrorism under the guise of jihad -- is a spiritual duty.
Whereas wealthy Pakistanis would rather donate their money than their sons to the cause, families in poor, rural
areas are likely to send their sons to "jihad" under the belief that doing so is the only way to fulfill this spiritual
duty. One mother whose son recently died fighting in Kashmir told me she would be happy if her six remaining
sons were martyred. "They will help me in the next life, which is the real life," she said.
When a boy becomes a martyr, thousands of people attend his funeral. Poor families become celebrities.
Everyone treats them with more respect after they lose a son, a martyr's father said. "And when there is a
martyr in the village, it encourages more children to join the jihad. It raises the spirit of the entire village," he
continued. In poor families with large numbers of children, a mother can assume that some of her children will
die of disease if not in war. This apparently makes it easier to donate a son to what she feels is a just and holy
cause.
Many of these families receive financial assistance from the militant groups. The Shuhda-e-Islam Foundation,
founded in 1995 by Jamaat-e-Islami, claims to have dispensed 13 million rupees to the families of martyrs. It
also claims to provide financial support to some 364 families by paying off loans, setting them up in businesses,
or helping them with housing. Moreover, the foundation provides emotional and spiritual support by constantly
reminding the families that they did the right thing by donating their children to assist their Muslim brethren in
Kashmir. Both Lashkar-i-Taiba and Harkat have also established charitable organizations that reward the families
of martyrs -- a practice common to gangs in inner-city Los Angeles and terrorist groups such as al Qaeda and
Hamas. Although these foundations provide a service to families in need, they also perpetuate a culture of
violence.
BAD BOYS
The comparison to gangs and terrorist groups is particularly apt because the irregulars often hire criminals to do
their dirty work -- and sometimes turn to petty or organized crime themselves. Criminals are typically hired to
"drop" weapons and explosives or to carry out extreme acts of violence that a typical irregular is reluctant or
unable to perform. For example, members of the Dubai-based crime ring that bombed the Bombay stock
exchange in March 1993 later confessed that they had been in Islamabad the previous month, where Pakistani
irregulars had allegedly trained them to throw hand grenades and fire Kalashnikov assault rifles.
Law-enforcement authorities noted that the operatives' passports contained no Pakistani stamps, suggesting
the complicity of the Pakistani government.
Criminals joining supposed jihad movements tend to be less committed to the group's purported goals and more
committed to violence for its own sake -- or for the money. When criminals join private armies, therefore, the
political and moral constraints that often inhibit mass-casualty, random attacks are likely to break down.
Criminal involvement in the movement also worsens the principal-agent problem for Pakistan: pure mercenaries
are even harder to control than individuals whose goals are at least partly aligned with those of the state.
EXPORTING HOLY WAR
Exacerbating the principal-agent problem, Pakistani militant groups are now exporting their version of jihad all
over the world. The Khudamudeen madrasah, according to its chancellor, is training students from Burma, Nepal,
Chechnya, Bangladesh, Afghanistan, Yemen, Mongolia, and Kuwait. Out of the 700 students at the madrasah,
127 are foreigners. Nearly half the student body at Darul Uloom Haqqania, the madrasah that created the
Taliban, is from Afghanistan. It also trains students from Uzbekistan, Tajikistan, Russia, and Turkey, and is
currently expanding its capacity to house foreign students from 100 to 500, its chancellor said. A Chechen
student at the school told me his goal when he returned home was to fight Russians. And according to the U.S.
State Department, Pakistani groups and individuals also help finance and train the Islamic Movement of
Uzbekistan, a terrorist organization that aims to overthrow secular governments in Central Asia.
Many of the militant groups associated with radical madrasahs regularly proclaim their plans to bring "jihad" to
India proper as well as to the West, which they believe is run by Jews. Lashkar-i-Taiba has announced its plans
to "plant Islamic flags in Delhi, Tel Aviv, and Washington." One of Lashkar's Web sites includes a list of purported
Jews working for the Clinton administration, including director of presidential personnel Robert Nash (an African
American from Arkansas) and CIA director George Tenet (a Greek American). The group also accuses Israel of
assisting India in Kashmir. Asked for a list of his favorite books, a leader of Harkat recommended the history of
Hitler, who he said understood that "Jews and peace are incompatible." Several militant groups boast pictures of
burning American flags on their calendars and posters