Why would India do that? Why would a unilateral surrender of land be considered valid terms for peace?
> swapping land
In a fair swap, what land would Pakistan offer in exchange?
> Muslims, recently
Pakistan doesn't have a stellar reputation for treatment of its Muslim minorities (Ahmediyyas, Ismailis) and non-Punjabi muslims (Balochis, Pasthuns, once-Pakistani-Bengalis). I'm inclined to consider India a safer nation for most muslim denominations.
____
Note: Pakistan's historic terror attacks have been deep in India soil (Mumbai, Delh). There is no indication that they'd maintain peace with India if they gained control over Kashmir.