Contrary to what many Indians may believe, its actually in Pakistan's interest to have good relations with India. Otherwise Pakistan in the long run is open to manipulation from China and Middle East, who will exploit our fears that may never come true. India will be exploited by America and EU. I always propagate to my friends and some folk from India who still have logical thinking before jingoism on their priority list, to 'look beyond Kashmir'.
If Kashmir issue is solved today - i bet you within 10 years, the whole S.Asia/C.asian territory will start to lose the 'rigid identities' when the 'tit flashing contest' stops. Peace between India and Pakistan is a 'threat' to a 3rd force, and its our duty to achieve that peace regardless of what happens in between. We have a choice between defeating them by moving on or keep being manipulated while everyone else surpasses us.