They won't risk the player's life for cricket despite getting presidential-level security and rightly so, as life is more important than sports. Even Police forces are not secure there atm, the recent Peshawar blast is an example.
BCCI has refused to play in Pakistan even before Sethi sb took charge of PCB. Australia, England and New Zealand have toured Pakistan and everything went fine. Security of team is not an issue.
Peshawar blast has nothing to do with BCCI stance as they were not touring Pakistan ever since BJP has taken over government in India, india came to Pakistan in 2008 last time. PCB best option is not to travel to India for WC.