"We cannot have illusions about geography. Pakistan has a role to play, and the Americans probably need them at this juncture more than ever before," a source said.
That would result in countries like the US putting less pressure on Pakistan to act against terror, even as Pakistan would seeks their help on issues such as Kashmir.
"We could see the United States state department talking about the Kashmir issue after a long time during this incident," said Bhadrakumar.
India and Pakistan had sparred over the Kashmir issue in the United Nations last year too.
Though both Pakistan and India are bracing for the elections, sources said Pakistan feels that it got less out of the resumed peace-process. Pakistan has been keen on a visit by the Indian Prime Minister, which looks almost impossible now.
Islamabad also had reservations about India making the dialogue process conditional on the progress in the Mumbai terror attack investigation.
However, the moot question lies on whether Pakistan army is changing its tack now.
"We were given to understand that the Pakistan army is firmly behind the peace process between the two countries. This incident raises doubts," an official said.