Washington: Most of the American military aid to Islamabad for counterinsurgency has gone into buying equipment to fight India, a former US diplomat has told lawmakers as he described Pakistan as a country which is "on the edge in many ways of being a failed state".

Testifying before a Congressional Committee, Ronald Neumann, former US Ambassador to Afghanistan, said the State Department on Terrorism ranks Pakistan as having the highest level of terrorist incidents of any country in the world.