It's proven beyond doubt that India can't win any conventional battle with Pakistan.
It's not because they have less ammunition, but because they are not battle harden army.
I bet Indians have realized it squarely, but giving them any chance of preparation for future battles would be stupidity, even by measures of common sense.
There can't be a better opportunity to break back of Indian army forever.
At this moment, IAF is physiologically defeated. They will not engage PAF but will run away.
All what PAF need to do is drop payloads at parked IAF jets.
Apparently, Indian army is a big mess and all of it should be decimated in Kashmir without delay.
Last time we saw there mess at the time of Kargil. They are still the same.
Pakistan can't afford to pull back at this opportune moment in history.
After decimating Indian armed forces, we'll take back what belonged to us in 1947.
India will find it difficult to win a conventional war with Pakistan because the nuclear weapons will be thrown in equation when Indian Army enters deep with inside Pakistan's borders. Even then by that time IA would have decimated much of the PA and would regard this destruction as victory. In order to counter all this, as soon as war starts, PA will launch its own offensives inside India to keep the war on their territory.
Psychological victory can be achieved in many ways otherwise also. One successful operation by any army can change the tide of the war by uplifting spirit of soldiers. If IAF is completely mobilized against PAF, it would be a battle of survival for PAF. At the end of the day, losses will be on both ends. It wouldn't matter who lost more or less, because you can even see now the amount of propaganda shown in the news about covering own losses and blaming the other side. Soldiers get affected mostly by what they see in combat first hand. If PA soldiers get high morale due to wins in WOT, IA morale might rise through subduing the civilian population of Indian Occupied Kashmir. If PAF shows its teeth by downing IAF aircrafts, the IAF Pilots will be in high spirits knowing they have a larger number of aircrafts and try to fight a war of attrition with PAF. What you are saying is exactly what Ayub thought after 1962 and during 1965 and the result wasn't favorable. East Pakistan could still be standing had India not been threatened thrice during 1965 (Rann of Kutch, Op Gibraltar, Op Grandslam). Eventually India attacked on IB in september 1965 and Pakistan defended itself. But then Pakistan couldn't cope up with Indian military Modernization from 1966-1971 and then East Pakistan was lost.
Pakistan has an active front in Baluchistan/KPK, another on LOC and now a third front opened up all along Indian border involving Air Force and probably Navy soon. Iran is sitting next to Baluchistan and is under Indian influence. An aerial victory on LOC doesn't guarantee that Pakistani Military can fight a war on all these fronts simultaneously and successfully. As soon as a full fledged war starts, the enemy will play as dirty as possible, and India is preparing to do that exactly. LOC will become hot and forces will invade all along the border, Indian proxies in Afghanistan will actively target western border and will tie down FC all along western border. India will use Iran soil to launch more covert operatives inside Baluchistan since military resources from baluchistan will move out to Sindh. The incidents of destruction inside Pakistan will start to rise due to incursions from Afghanistan. FC in KPK and Baluchistan will lose support of SSG, ISI, Army Gunships, LCB's, PAF strike aircraft and artillery as all these will be deployed against IA and IAF. Any ongoing Covert Ops and spy leads currently in process inside Baluchistan will be lost. This means all the sacrifices and efforts of Military on western border since past 15 years will go down the drain.
Its in best interest of Pakistan and Military to first win the war in the west, make Iran realize its folly of assisting India and focus on improving economy. Pakistan-India war will damage the region badly with no useful outcome except deaths of soldiers and civilians as well as destruction of equipment and infrastructure. India will lose a decade probably of its modernization race with China where as the tenure of Pakistan's war on western border will become longer. No piece of land will be conquered by either country. Kashmir is important, but peace on western front is important too. If Indian Kashmir has to be taken militarily, China has to play its part too since China is sitting on top of Kashmir, but China is poised towards its own economic growth, which can be seen through CPEC.
Its useful to compete with India on economic, research and development, diplomatic, scientific, exporting and industrial fronts. We have example of South Korea and North Korea.