There was other reason also as the post 9/11 scenario would not allow for total support for the fighters but pakistan did have leverage over the US and could have continued partial support but instead there was a total clampdown on the activities of the fighters.
I think as in the past, pakistan leaders have accepted assurances/promises from the indian govt that if they did X Y and Z (stop support for the khalistan movement)the indians would finalize an agreement on kashmir and i think this was the same illusion musharaff was under, but he should have learned from past history that no credit would be given by the indian but instead it would be portrayed as an all "indian victory against the terrorist" as the demise of the khalsistan fight was by the indian govt and as the present drop in violence in kashmir is.
Mushy did genuinely put a stop to all kashmir activites
The freedom fighters are a low cost force for pakistan of no more then a couple thousand men that can pin down half a million men "security force" in kashmir.
Pakistan has not been able to gain kashmir through the pak army on a few occasions and thus rather then keep repeating the same failed attempts they changed tactics and went for the freedom fighters options after getting the window of opportunity due to india rigging election and shooting demonstrators in the late 80s early 90s.
The "political awakening" in kashmir started in the early 80s with a push to use the democratic system to achieve independence from india but was crushed by the indians which then led to the kashmirs having to take up arms......what will be so different this time if kashmir goes down the political path?
I agree that the US will support pakistan on kashmir but for its own ulterior motives but i can see the the chinese coming in on the act in the near future.
So we could see in the near future two superpowers using the kashmir issue as tool to keep indian in check.
Pakistan can turn the tap off and on when if comes to sending fighters into kashmir.........if no credit is given to pakistan for the current climate in kashmir does that mean that pakistan should sent the fighters back to prove a point and then stop them and then the indians will give credit?
Honestly I should say that it is not like I am not giving any Credit to Pakistan.It will be a double speak for me if i would say that there credit is not there in Pakistan too...Of course Musharaf,after Post Kargil, was really a helpful person to India's request...And apart from that the most vital thing, the mindset and vgour of support of Pakistan intelligentia in 1990 is different in 2013 than what it was was in 1990...
But i can say that yes, Pakistan deserves credit for any improvement in Kashmir situation and so does some other factors too..