The only thing that makes pakistan viable as country is its stand against India, i.e muslim standing against Hindu India. Once the issue is solved, the very existence of pakistan will be questioned by the different people inside pakistan. Kashmir is the glue that hold pakistan together-so this issue can never go away.
India will never solve this issue either- because India has more to gain by bleeding pakistan very slowly- not to fast as to disintegrate pakistan- India does not want these muslim back either. But slow enough that pakistan remain a backward country/insignificant country. The US has been funding Pakistan economy for a very long time now- but thsi will stop one day or the other - as world policy change. China will back pakistan as a competition to India, but China cannnot backed pakistan too much either as its does not want pakistan to become a threat either to china itself - by pakistan being strong enough to support the huge muslim province of China. So China does not want this issue resolve either.
So pakistan is just stuck in this situation- so we will always see Pakistan raising the kashmir issue every time they need something to rally their whole country. And India wil encouraged them also to do that, because it makes political sense.