Bruce Riedel who ran President Obama’s AfPak review now favors containment over engagement:
It is time to move to a policy of containment, which would mean a more hostile relationship. But it should be a focused hostility, aimed not at hurting Pakistan’s people but at holding its army and intelligence branches accountable. When we learn that an officer from Pakistan’s Inter-Services Intelligence, or ISI, is aiding terrorism, whether in Afghanistan or India, we should put him on wanted lists, sanction him at the United Nations and, if he is dangerous enough, track him down. Putting sanctions on organizations in Pakistan has not worked in the past, but sanctioning individuals has — as the nuclear proliferator Abdul Qadeer Khan could attest.
It is useful to think of the US-Pakistan game as a principal-agent relationship. The US (principal) would like to “pay for performance” and make a transfer if and only if the Pakistani army…
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Utopia, you are standing in it! 
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