The US had trained the Pakistani military for some time, making it one of the best fighting forces in the region.
Pakistani troops are deployed to guard the GCC sheikdoms of Saudi Arabia, Kuwait, Qatar, Bahrain, Oman and the United Arab Emirates.  GCC monarchs get their US-trained praetorian guard, the US gets cheap abundant crude and its chronic debt underwritten, and Pakistan gets military aid from both.
This oil for arms quid pro quo is what kept the Afghan mujahadeen armed and dangerous. According to the Saudi’s US Ambassador Prince Bandar bin Sultan, the Saudi’s matched US mujahadeen funding penny for penny. If true, the Saudis kicked down $3.8 billion. Saudi billionaires were making private contributions too and none contributed more than Sheik Khalid bin Mahfouz, BCCI’s second largest shareholder and owner of National Commercial Bank, the biggest bank in the Arab world. The Saudis recruited Islamic fundamentalists from the Persian Gulf to fight the Soviets in Afghanistan. Their point man in this effort was Osama bin Laden.
Other GCC countries also supported the mujahadeen, often through elaborate funding schemes. In 1990 Iraqi Ambassador to the US Mohammed al-Moshat stated on CNN that much of Kuwait’s oil wealth is employed in the bankrolling of Pakistan-based mujahadeen rebel heroin trafficking in the Golden Crescent.  Just months before Moshat made his claim, Sheik Talal al-Sabah, nephew of Kuwaiti emir Sheik Jaber al-Sabah, was arrested in France in possession of 1.5 pounds of heroin.
While the Saudis and Kuwaitis bankrolled the heroin traffic and American youth puffed on bricks of Afghani hash, Nancy Reagan was busy founding the Drug Abuse Fund with $3.6 million in seed money from King Faud and other wealthy Saudis. The Sultan of Brunei, who contributed $10 million to the contra cocaine effort, gave the first lady $500,000 to launch her next effort, National Federation of Parents for Drug Free Youth. King Faud gave another $1 million. At the same time former CIA Director Richard Helms headed Community Foundation of Greater Washington, DC, a major funding source for DARE and the “Just Say No” campaign.
Another mujahadeen funding endeavor unfolded in Hong Kong, where in 1981 Bill Casey Hardy Boy John Shaheen set up Tetra Finance and Hong Kong Deposit & Guaranty, whose directors included a top lieutenant to UAE leader Sheik Zayed and a close associate of Saudi intelligence chief Kamal Adham. Zayed was BCCI’s biggest stockholder, while Adham washed the brunt of BCCI’s money. The $20 million it took to start the Hong Kong banks came from Princess Ashraf, the Shah of Iran’s sister. She was solicited for the funds by Cyrus Hashemi, who a year earlier had met with DCI Casey in Madrid. Cyrus’s brother Jamshid had directed the Shah’s SAVAK secret police.
Another Casey Hardy Boy, Swiss businessman Itzak “Bruce” Rappaport, had close connections to the National Bank of Oman, whose monarch Sultan Qaboos was given 100 acres of prime land near the Port of Karachi by the Pakistani government as payback for his financial support of the mujahadeen. The National Bank of Oman was owned by BCCI and owned a big chunk of BCCI. The bank was a major conduit for CIA and GCC aid to the mujahadeen. It had close relations with Oman-based Tetra Tech, which was run by CIA agent James Critchfield and financed Chinese government weapons sales to the mujahadeen. Bahrain’s monarch Sheik al-Khalifa, another BCCI shareholder, also contributed to the Afghan cause. 
In the mid-1980’s the UN tried to broker a peace deal in Afghanistan involving a complete Soviet withdrawal in return for an end to US and GCC support for the Afghan rebels. The Reagan Administration refused the UN deal. It wanted to “give the Soviets their Vietnam” as part of a grander scheme to rip apart the Soviet Union. It also wanted the socialist Karmal government out of Kabul. In 1986 US military aid to the mujahadeen increased dramatically to $1 billion/year.
In 1988, in a renewed UN peace effort, the US and Russia signed the Geneva Accords which called for an arms embargo to Afghanistan. Both countries ignored the deal and the fighting continued. Mujahadeen fighters routinely tortured and mutilated captured Russian and Afghan soldiers, Pink Plan-style, often in the presence of American advisers.  In 1989 the Soviets pulled out of Afghanistan. Their hand-picked Prime Minister Babrak Karmal was replaced by the democratically-elected Najibullah government.
But Najibullah was also a socialist and democracy was never a State Department priority. Though the Soviets were gone, the US kept funding the guerrilla campaign against Kabul. In 1992 Najibullah was overthrown and one of the seven fighting mujahadeen factions led by Burhaddin Rabbani took power. Six of the seven rebel groups laid down their arms and got behind Rabbani. The one that did not was Gulbuddin Hekmatyar’s Hezbi-i Isbmi, which proceeded to soak the streets of Kabul in yet another round of blood. Though the UN now recognized the Rabbani-led faction as Afghanistan’s legitimate government, the CIA still saw Rabbani as too much the leftist.
Hekmatyar’s forces finally seized Kabul. Rabbani and his government fled north into the Mazar-i-Sharif region where, under the command of military chief Sheik Ahmed Shah Massoud, the ousted mujahadeen factions reconstituted themselves as the Northern Alliance. In 1995, Hezbi-i Isbmi suddenly stepped down as if ceding Kabul to another Pakistani ISI creation which was already in charge in Kandahar- the Taliban.
More than two million Afghans had died in the decade long war precipitated by the CIA in its biggest covert operation since Vietnam. US taxpayers spent $3.8 billion prosecuting the genocide. The US did nothing to help rebuild Afghanistan and the forces which the CIA created to fight their proxy war were increasingly turning their anger towards the West.
Dean Henderson is the author of five books:Big Oil & Their Bankers in the Persian Gulf: Four Horsemen, Eight Families & Their Global Intelligence, Narcotics & Terror Network, The Grateful Unrich: Revolution in 50 Countries, Das Kartell der Federal Reserve, Stickin’ it to the Matrix & The Federal Reserve Cartel. You can subscribe free to his weekly Left Hook column @www.hendersonlefthook.wordpress.com