Well its our fault that we allowed Pakistan artists to work in Bollywood..but then again the Pakistani artists never claimed that they are #01 and is humble. Its the Pakistani cheerleaders who think that they 'dominate' Indian music.
Bollywood is all about the money, and keeping Pakistani people around makes some Pakistanis think that they own Bollywood and end up contributing to its revenues by watching the movies and listening to Bollywood songs. Evidence of this (deluded) mentality is some Pakistanis in this very thread. Its a smart business move, because at the expense of having lets say 2 Pakistani singers (Rahat and Atif Aslam), we pretty much maintain a monopoly on their market. Its a very common business tactic that most businesses use to expand their markets in foreign locations.
I frankly dont like any Pakistani presence in Bollywood, I think that it should only be for Indians (and any country except a political enemy to our nation that wants part of our land, i.e. Kashmir), but with Bollywood getting more and more global everyday, even white/black people from Europe and Africa will start coming in another decade or so (and in many ways already have) and Bollywood will incorporate them too to make its market even bigger.