In my humble opinion, Pakistan should recognize Israel.
Israel is a solid reality and a strong, developed country.
Many Muslim countries have already accepted Israel.
8 million Jews in Israel have the right to live.
Pakistan's official recognition of Israel will enable Pakistan to help the Palestinian cause and improve relations with the west. We can surely help establish a free state of Palestine.
We have nothing to lose.
I also think that any Pak govt will be very reluctant to recognize Israel fearing a huge backlash from the very emotional awam of Pakistan.