Re: This can help Pakistan to distract millions of Pakistani youths
You might not know this, in cetain segments of Garment export Pakistan has better receiption abroad. Today Pakistan pays a premium to get Textile machinery imported through legal means and smuggling. There is every incentive for engineering firms to invest in Pakistan where there will be demand for their products. Same thing is true for other areas, manufacturing follows where demand is if the manufacting cost is managable. Besides, the labor cost espceially the semi skilled and skilled that is required in certain manufacturing industries is NOT going to remain cheap in India for ever. Besides, with scale the cost will come down automatically.
Also, cost is not the only criteria. With growing rich and high middle cost, Indians are willing to pay for quality, Pakistan can covet that market. For example, Pakistan can make better Sherwani’s than anything Delhi can churn out. India has huge pool of software talent, but again, like most countries all of it is not top notch. Indian software giants can setup centers in Pakistan to attract the best in Pakistan. All these will lead to trickle down effect.
Of course, even with good relations things will not happen automatically, the governments in Pakistan may have to do their part to woo the Industries, like state govenrments in India compete with each others. Again, I will give example of Tamil Nadu, it has many advantages for auto industries, yet, it regularly offers incentives to attract foreign auto majors to invest in Tamil Nadu. Same thing goes to Gujarat or Maharastra.
You need to create opportunities, things will happen automatically. Water buffalo may be an ugly animal, yet many parasites and birds live off it. (before you go to town with my comparison of buffalo to India, let me make it clear, Buffalo is harmless and productive).