India needs to relax on Kashmir issue. India has the might to retaliate if kargil like misadventure recurrs again in Kashmir which I don't think Pakistan will repeat. All pakistan can now do is:
1. Try and push India for talks and resolution of kashmir issue.
=> India has to be adamant and on its toes for this.
2. Continue the proxy war of sending in the trained militants. But Pakistan will not be able to continue the proxy as before due to international pressure on crushing terrorism.
=> Indian army has to continue thwarting the militants actions and the Indian government should continue to put pressure on Pakistan government to close down all the militant training camps.
Time will come when pakistan will accept the LOC as international border. But at this time, India should continue to pressure pakistan on vacating the POK. India has the economic and miliatry might to engage pakistan but Pakistan does not have that might to engage India for a long time...