Further to the debate ~ Many people of Asian Origins (usually second or third generation so British Born) call one another Paki just as many West Indians and Black Americans call one another Nigger. Sometimes they say this as almost a term of affection as between members of a club but at other times they use it as an insult. I personally have been called An Infidel, Whitey, Honkey, White Bastard, Child Killer (by a Palestinian Arab). We are "Pigs" to many Chinese, Wingeing Poms to almost all Australians and many Americans call us cowards. The French call s Rostbifs but often follow this with Merde.
Much depends on how the words are used whether offence is meant or not but everyone in the services has a nickname and usually it is associated with their origins.
In Pakistan they have burned our flags and "leaders" effigies.
They shout insults in our streets (see recent "protests") and declare that we should all be killed. They blow us up and praise those who try to whilst they live among us.
Perhaps the biggest insult of all is that so many of them perceive us as a "Soft Touch" and would rather live here being called Paki, accepting all the handouts that we offer them, than return to the poverty, mud huts and above all the caste system that makes many of them "untouchables" in their own countries.