If you start with the intent of losing than you only lose. It's neither the size of the country nor the economy, it's the will to survive and commitment to fight to the end, not just to get martyred, but to kick ***. Israel is a living example of this, if nothing else at least this is what we can learn from them.
With your approach, we would be better off dissolving our military and spending all those funds on social uplift. and no we are not a small economy or unable to afford the necessary equipment, its just that we keep electing anti-state corrupt to the core criminals as our leaders who have no interest in the country just filling up their coffers. Hopefully if the current government can even reduce that corruption by 50% and recover only 50% of looted money in the last decade, we would be in a position to afford most necessary equipment.
You make it sound like Pakistan is a ripe grape and Israelis can just swallow it whole. They didn't dare attack us for whatever reasons in the 80's when we were not even a nuclear state and a lot weaker militarily. It's prudent to assume that they regard us a very serious threat among all Muslim countries just like we regard them as a potential threat. The best strategy is to be one step smarter then the enemy and counter their moves quietly whether politically or by preparing for that.
Israel's very small size gives us an edge in terms of concentrated attack from two directions and their guaranteed total destruction if GOD forbid the dispute escalates to the next level.
Politically however, I don't think the two countries have ever gotten in to any aggressive verbal exchanges on any world forum. We don't have any diplomatic relations with each other but we also don't have any open animosity towards each other, which I think is going to continue for the foreseeable future, however if they sincerely work towards a peaceful solution of Palestine issue and stop human rights violations then we may establish some kind of formal relations with them, which would be good for both the countries.
