Paki is a term used by english people 'paki' is short for pakistan. English people use this term when they are refering to someone from a different culture (normally of indian decent), it doesn't always mean they are insulting that race, neither does it necessary mean they are refering to someone from pakistan.
English guy: "Who was that paki on TV last night?" English girl: "Erm.. I think he was iranian". English guy: "Doesn't matter they all look the same to me."