Originally posted by the Voice of America. Voice of America content is produced by the Voice of America, a United States federal government-sponsored entity, and is in the public domain. US State Department: Al-Qaida in Pakistan Gravest Threat to US VOA News 05 August 2010 The U.S. State Department says al-Qaida's core in Pakistan remained in 2009 the "most formidable terrorist organization" targeting the United States homeland. In its annual report on terrorism Thursday, the State Department says the U.S. intelligence community determined that al-Qaida was actively engaged last year in operational plotting against the U.S. and continued recruiting, training, and deploying operatives, including individuals from Western Europe and North America. It says al-Qaida continued to try to expand its operational capabilities by partnering with other terrorist groups. But it says the terror network suffered "significant setbacks" last year, including operational problems and opposition from Muslim populations. But the State Department says the attempted December 25 bombing of a U.S. airliner showed that the Yemen-based al-Qaida affiliate has developed "not just the desire but also the capability" to launch a strike against the United States. The report says there has been an increase in cases of Americans becoming operatives for foreign terrorist organizations or proponents of violent extremism. It also says an increasing number of young people in South Asia and the Middle East could be at risk, as that population rapidly expands. It says Muslims in Europe may also be susceptible to recruitment if they continue to experience integration problems. The State Department report also notes that the United States will continue to focus on cyber activities, as terrorists have used technologies to transfer funds, distribute propaganda, plan attacks and coordinate movements. Some information for this report was provided by AP. .