From the Executive summary of 2012 Report

During the period of April 1 to September 30, 2012, the Coalition and our Afghan partners blunted the insurgent summer offensive, continued to transition the Afghan National Security Forces (ANSF) into security lead, pushed violence out of most populated areas, and coalition member nations signed several international agreements to support the long-term stability and security of Afghanistan…

Despite these and other positive trends during the reporting period, the campaign continued to face challenges, including a rise in insider attacks. The rise in insider attacks has the potential to adversely affect the Coalition’s political landscape, but mitigation policies and a collective ISAF-ANSF approach are helping to reduce risks to coalition personnel, and to sustain confidence in the campaign. The cause of and eventual solution to this joint ISAF and ANSF problem will require continuous assessment; it remains clear that the insider threat is both an enemy tactic and has a cultural component. The many mitigation policies recently put in place will require additional time to assess their effects, although the number of insider attacks has dropped off sharply from the peak in August.

The insurgency’s safe havens in Pakistan, the limited institutional capacity of the Afghan  government, and endemic corruption remain the greatest risks to long-term stability and sustainable security in Afghanistan. The Taliban-led insurgency and its al-Qaida affiliates still operate from sanctuaries in Pakistan, however, the insurgency and al-Qaida continue to face U.S. counterterrorism pressure within the safe havens. U.S. relations with Pakistan have begun to improve following the re-opening of Pakistani Ground Lines of Communication (GLOCs), and  there has been nascent improvement with respect to cross-border cooperation between Pakistan and Afghanistan.

Although the insurgency’s kinetic capabilities have declined from their peak in 2010, the insurgents remain resilient and determined, and will likely attempt to regain lost ground and  influence through continued assassinations, intimidation, high-profile attacks, and the  emplacement of improvised explosive devices (IEDs). Widespread corruption continues to limit  the effectiveness and legitimacy of the Afghan government. Despite these challenges, the  Coalition continued to make measured progress toward achieving its strategic goals during the  reporting period.

Excerpt from Report on Progress Toward Security and Stability in Afghanistan, (DOD,  Dec. 2012)