The threats by respective governments taking action would be limited, the real worry would be of the mobs. Why I proposed elsewhere that India & Pakistan have an industrial zone somewhere along the border with both having common access. Safety would become less of an issue & the two countries can charges internal duties on whatever products flow into each country from that specified zone. With both Indian & Pakistanis employable within that zone, that would probably be the best bet to see real investment come in.
