I think we need to establish a baseline.
Its interesting how you still believe Pakistan the capability to tackle such issues in such troubling times, one really wonders where your priorities lie but in any case, lets carry on.
1. No terrorism. Lives of Kashmiri people come first.
Sounds good so far.
2. Smart militancy - attacking high value military targets
Not so much anymore,
1. Define 'Smart militancy'. Oh the irony, I'll play along though
. Certain segments of the population will either side with India or remain neutral. How do you think your 'Smart Militants' will deal with them? The only way the militants can have an impact is by disrupting daily life, i.e terrorism. (refer to point 2)
2. India has dealt with the insurgents for over 20 years, we have over 600,000 troops in Kashmir. What exactly do you think you'll achieve by harassing the IA with a random gunfight/IED every now and then. We aren't averse to casualties, so if that's where you're going with this it simply won't work. Think about it, its been 60 years.
3. Do you really think Pakistan is in a position to support 'smart militants' in Kashmir? Be realistic.
3. Agreeing that India is the problem in Kashmir and solution in Kashmir will not be of India's liking
Well of course not, because we AREN'T the problem. Those Punjabis fighting for 'freedom' are.
Pretty sure you already do.
5. No shelter down strikes or at least minimizing them.
Once again, the only way Pakistan can keep things on the broil is by seriously disrupting daily life. Everyone in Kashmir understands that India isn't going away in a hurry, so all Pakistan ends up doing is alienating the population further by menacing them with propaganda and throwing them under the bus when India responds. Of course, that doesn't make us look any better, but you've gradually begun to erode your own moral stance in trying to make us look like the aggressor. [We always have the option to grant them greater autonomy/other incentives to cool things down.]
6. Ensuring Kashmiris have access to envoys of the world. If India has a bigger vice than its stubborness its, their love for their name in the world.
No major power will intervene in our affairs. China might say a word or two to placate Pakistan, but at the end of the day its in their interest to perpetuate the conflict so I wouldn't expect much from them.
The problem here is that you aren't looking at the situation realistically. India can't be coerced into imposing a 'solution'. We aren't afraid of making sacrifices, we've done it for decades, in any case random terrorist attacks end up hurting Pakistan in the long run.
At the end of the day, I'm not sure what we've got planned for Kashmir but here are a few things you should consider:
1. Why should we solve anything now when we think we'll be in a much stronger position 10 or 20 years from today?
2. What about the rivers?
3. Will LeT/JuD/random Jihadi groups simply disband and abjure violence once we sort out the issue?