I think this stance isn't correct in my opinion. The world's shrank with electronics and economy (2 E's which transformed the world). This change would happen in the next few years by itself.
All of your other friends, aka, the Ummah, including Saudi Arabia, etc accept Israel. Many Muslim countries have good business relationships with Israel. The American Jewish community had a huge hand in supporting growth of the Malaysian economy, just so you know.
Similarly, Israel and Turkey do trade and including defense systems too. So why Pakistan should stay back by itself? Pakistan should watch out for her interest. You can maintain a business and courteous relationship with Israel. You don't have to be best friend and go play Pool (Billiard) together.....
Here's just ONE reason for Pakistan to recognize Israel and create diplomatic relations with others. This is a new thread on here, read it:
How to counter Gulf threat to Pakistan's integrity ? | Page 18
Here's a list of how many countries accept Israel and have diplomatic relationships with the state:
International recognition of Israel - Wikipedia, the free encyclopedia