1. There is no occupation. The Pakistani army are our sons and daughters, ever heard of the AK regiment? In fact, if you ask Pakistani troops they'll tell you that when the drive up to LOC they receive more salutes and handwaving than any other part of Pakistan. You also seldom see the army anyway. They are all posted to the front.
2. Our forefathers saw to the whole "being part of India", by fighting and breaking away from it.
3. It is considered a separate region, with its own government, rules and so forth. This is the case only because of the ongoing Kashmir dispute. Regardless of the outcome of that dispute, the region will be merged with Pakistan properly as a province.
Now stop spoiling this thread.