Kashmir shares more genetic, religious, cultural and geographical similarities with Pakistan than it does with India.
Not to mention the fact that Kashmiris would like to live with their Gilgit brothers.
Yes, they are fully entitled to lose the match if they want to. Instead, Pakistan should do better next time, so they wouldn't be in a similar position like now.
Football's good because of the large viewership worldwide.
Pakistan, especially Sialkot produces most of the world's footballs (50%+ for the city), so why don't they donate some footballs to kids so Pak football culture rises?
Morality doesn't matter in the real world. The US can invade innocent countries and sadly other countries can't/won't do anything about it. That's why smart nations build nuclear weapons to prevent this.