As I have been saying before, it is not poverty, injustice, and education that is the root cause of terrorism. It is this belief of having a Salafi/Islamic state in Pakistan that is the root cause. And not only Pakistan, Pakistan is just supposed to be the beginning, it is supposed to be the world. You see this is a supremacist ideology. You can make people literate, provide justice, and provide better living, but that will not prevent them for fighting for Allah's law. This is also explains why peace deals with these people don't work. What are we to tell them, please stop demanding your divine law, the one that you have faith in and fighting for which is your ultimate goal? Good luck to talking to these people.
The more fundamental a person gets, the more his demands for sharia law increase. Needless to say, the countries that base their laws on shariah are bound to be the most backward and poor (Saudi Arabia has oil but backward, Sudan, Yemen), for you simply cannot compete in the 21st century if your society is based on 7th century principles.