Talk:Australian English terms for people

Is "paki" actually offensive to persons of Pakistani origin? I've heard people from Pakistan in Australia refer to other Pakitstani people as "paki" although I am not sure in what context they use it. I know that if a person other than a person who is Pakistani, uses the term, it is sometimes used in a derogatory tone of voice but I'v also heard it used in a very friendly way as well - Nigel J Van Houten