The CAD, from what I understand is not only the import of oil and gas but also too many finished consumer goods and even foods stuffs. $80 billion imports with not even half as much exports. I’m also not an economist but those numbers can’t be the basis for a sustainable business model.
Opening up to India without first having something worthwhile to export is a recipe for digging a deeper whole. The elite don’t have the right incentives to change. Even overseas Pakistanis don’t have the right incentive to shift from investing in housing to investing in industry.
80 billion amount (and its impact on CAD situation) is different subject to how its components (origins) are split by country in whichever equilibrium Pakistan economy has with world (governed by some underlying fundamentals which can be unpacked later).
Pakistan would save money (or consume a larger amount using same money - not considering benefits from multiplier effect of consumption) by having India compete with rest of world's exporters on equal footing.
i.e more trade with India would simply rejig some amounts within the 80 billion w.r.t advantages India has relative to other exporters in the case of Pakistan....rather than balloon the total import (since this is constrained by what Pakistan can export be it goods, remittance from labour, services etc and then impact from what is afforded in Curr. A by its decision to borrow from external market in its Cap A).
Tackling why the CAD is so skewed (i.e essentially why Pakistan is not able to export structurally and optimally to meet its import demand at almost any inelasticity setting in the current equilbrium) has to do with these underlying fundamentals.
Selective protectionism will not help that, in fact it just adds extra cost to Pakistan (spending more to buy whichever goods/services on things Indian logistics+capacity could provide cheaper
within that 80 billion dollar bill Pakistan forks out to the world in last snapshot measured).
i.e Pakistan "bleeds" this in the skewed Current Acc. as a whole to begin with (by squandering its capacity/potential to make even "low hanging fruit" parts of these imports itself and then try turn into net exporter over time) due to lack of investment (and the public trust that underlies this)
i.e Pro-investment, pro pubic trust reform is separate topic to surface level CAD component split.
(Geo)-Politically its a fine line to walk of course, there are upsides to greater trade regionally and with neighbours (leveraging logistical, proximity, cultural linguistic savings etc)...but they don't always triumph over every downside that exist outside of objective economics.
i.e BD mitigates what it does by its large imports from India only so much (border shootings/deaths, Shah fatass calling BD ppl as termites etc)
India in turn mitigates in turn what it does by large imports from China only so much w.r.t Xi/CCP deciding to go for more nibbling in the various border areas lately.
When things are converted to investment instead of pure trade, then things get mitigated far more (in my opinion) though.
Just like trade is itself a vast improvement over aid.
i.e Rather than giving a man a fish, let him buy it...and better yet teach him to fish in the end (and move on to selling him better worthier things you get into by doing so).
i.e one can study post WW2 Europe on this. i.e why was there a switch from Morgenthau to Marshall and (Western) European economic integration (at great investment and cross-national institutional development rather than just aid and then trade) while the memories of that horrible war was still quite searing and fresh?
Or post WW2 + Chinese civil war East Asia during the cold war (how Japan invested in South Korea and then China later, how Taiwan invested in China etc etc....no matter the serious psychological memories and consequences of the wars in that region.
Vietnam comes to mind recently as well. They are extremely resentful of and suspicious of the PRC (especially since the 1979 war).... but its put aside for the large investment drive the Chinese have now accomplished to mutual benefit....well past the lower-tier trade paradigm I am stuck to for the IND-PAK case. Vietnam and the US as well nowadays (given the Vietnam war).
It will take decades for India to become investment capacity surplus (to other countries in serious way) like China is now (though china is scaling things back drastically - thats another story)....so there is plenty of time to explore things in the low tier trade level first while Pakistan tackles the fundamental reform it needs to get serious investment from world in first place.