Yeah you said right, there has never been a direct peaceful treaty between the two nations, but we have signed indirect peaceful treaties like Tashkent, Agra summit, Delhi agreement, karachi agreement, Lahore declaration etc. Some great leaders on both sides have tried to bring peace and de-escalate the situation.
You are also right that people of these countries are also fighting internally but it all depends on the leader.
As John Maxwell has rightly said
"A leader is one who knows the way, goes the way, and shows the way." If our leaders will only show hate and voilence towards our neighbor, we the people will learn the same. If he will show respect and affection towards them, so will we.