Why would Paki be racist here?

It’s like how in America ‘Jap’ is racist, whereas here ‘Nip’ is racist. Both are short hands for the country name Japan/Nihon(Nippon).

Or the British turning Ning-Nong/Nig-Nog into their version of the n word because some politician used it as such in the 60s or something, whereas here we shortened it to nong and it’s kept its original meaning of a foolish person.

It’s the cultural history behind the words that make them racist and just because we speak dialects of English doesn’t mean our words have followed the same trajectories.