I don't completely agree with this. We let Russia leave Afghanistan in a haste, which created a power vacuum that we were unable to control. With no more western interest we were left alone to clean up the mess. As a result fighting between warlords continued and we had to become a party fighting for influence with regional countries such as Iran etc. We might had upper hand in Afghanistan but it was not fully pacified, assets were moved to stir up Kashmir which took a lot of strain on resources. You never start a new job until old one is finished. We had become a security state than an economic one. Add civilian corruption on top of it which acted as a catalyst for our economic downfall in 90s. We never secured our western borders and this one bite us big time. We should have secured our fences when our western neighbourhood was on fire.
I fully agree with you on post 911 strategy. Pakistan's interest was not looked after, perhaps Musharraf needed legitimacy and acceptance which he got out of it. He failed to isolate Pakistan from the affects of war on terrorism.
90s was the decade where India overtook us to become an economic & IT hub. I remember Cisco was interested in moving to Pakistani Hyderabad when Microsoft decided to move to Indian city of Hyderabad. But due to Mr.10% they ended up in Bangalore. We had very few leaders who were truely visionary or who put national interest ahead of personal interests.