In the UK 'Paki" has always been used as a racist insult. There is no way that it's an innocent shortening of 'Pakistani'. If it's OK for white people in the UK to use the term 'Paki" then it must be OK for white people in the USA to use the term 'Nigger'.
Well, that's news to me: there
was no Pakistan, neither west nor eastern until August, 1947, there was only India, and folks from there began to come to Britain soon afterwards because Britain granted people from what had previously been the single, united (but with warring factions of) India, passports.
In the British 50s, which I remember too well, most Brits didn't have a clue that there was a difference between Indians and Pakistanis. They all just came from India, period, and Jamaica was considered the major threat. But Paki was certainly not, in my experience, an insult, any more than calling somebody from Scotland a Scottie, a Scot, or a Jock, which isn't what the Americans think of as a jock.
If you want some real experience of discrimination, hear this: before we returned to Britain we lived in Bombay for six weeks or so. There was a famous swimming pool there called Breach Candy, which during the pre-47 period had been reserved for whites. Now, well after '47, during my stay in the city, I'd go swimming in that pool (two, actually: indoors and outside) every day. One day I went to the Eros cinema to watch a movie. To my surprise and joy, sitting right behind me was an Indian boy who'd been in the same school as myself, hundreds of miles away, down in the south. I suggested we go swimming together the next day, and he told me he couldn't go with me: he wouldn't be allowed in. Now get this: that was years after the Brits had given Independence to India. So what gives with color? Isn't it odd that even in an Independent India, folks could be barred from something within their own land because of colour? I felt totally embarrassed, for both of us.
Pakistani/Paki. An abbreviation ain't an insult; the full title can be a insult if the person saying the word means it to be.
People can find insults everywhere; all they need is imagination, will and agenda.
Rob C