IMO the focus on improving the economic connectivity between the two countries is a good idea (overall), but the current focus on making a few adjustments here and there to the lists of goods that can be export from country to the other severely limits the positive impact on the India-Pakistan relationship.
Pakistan is by far the weaker country economically, and any 'opening of trade' is going to be more of an advantage to India than to Pakistan, much as Pakistan's 'free trade agreement' with China has skewed the trade imbalance in favor of China. A more comprehensive approach to economic cooperation that looks at facilitating investment by major business groups in the other country in certain sectors might alleviate some concerns on the Pakistani side. Think of Indian pharma and automotive assemblers and auto-parts producers teaming up with partners in Pakistan to set up/expand manufacturing facilities.
Of course the beneficiary of such an approach, initially, would be Pakistan primarily, since Indian industry is significantly more diversified, which is why it would have to be part of a long term process of comprehensively liberalizing trade between India and Pakistan.