My take on this matter is.
1. Currently no govt. or indeed an authority like the Army is case of Pakistan can give away territory in Kashmir.
If any govt. does this there will protests on the streets, the govt. will be overthrown immediately never to be elected again for 50 years and the first order of the next govt. will be to overturn the previous decision of giving away territory.
2.No country, certainly not Pakistan, the weaker claimant, can solve the issue by force either direct armed forces action or through terrorists,It has been proven that terrorists ended up doing more harm to Pakistan than India.Continuing this policy will be worse for Pakistan.Though I think India is resigned to accept it since Pakistan is run by bigger morons than the morons running India IMO.
3.India's way forward of developing and normalizing relations in a terrorism free atmosphere while keeping Kashmir on backburner seems most pragmatic and workable to me.
India will do this with or without Pakistan''s consent.
BTW India and China are doing the exact thing.
Because morons runing India are not as stupid as morons running Pakistan.
4.Once the masses are educated on both sides, they will realize this animosity is counter productive to both sides and while they were busy fighting other countries like Malaysia who got independence much later have raced ahead of them.
5.The most probable solution once that happens is either both countries will keep what they have or Pakistan will have to make some concessions since it is likely to be the weaker claimant in the dispute,
Which makes me think have Pakistani planners not run a 50 or 100 year simulation of Kashmir conflict ?
In what scenario does Pakistan win according to them ?
If I were a Pakistani planner I would tell my govt to take offer of making LoC the IB asap before India gets too strong
India is trying to do the same thing with China but China is too wily,