Can't say one didn't foresee this. Indian govt and BCCI have taken the decision to cancel the tour of Pakistan early next year. All the security promises from the PCB fell short of changing the mindset of any offficial, in the wake of the terror events that wrecked havoc in the city of Mumbai in the last week of November. PCB and Pak govt are unhappy about the tour being cancelled, but Indian counterparts saw no other way out of the scenario. The ties between the two boards may weaken due to the current developments.
Sri Lankan Cricket Board headed by ex-captain Arjuna Ranatunga has offered to tour Pakistan if India doesn't. It'll be known in due course if that tour is brought up on the calendar.
Pakistan desperately needs a home series to put itself back on the cricket map. But, constant radical activities in and around the nation in the recent past has kept many nations away from it. Champions trophy had to be postponed to next year. The only good thing that happened in '08, was a good conduct of Asia Cup. Lets see how things go from now on.