Pakistan cricket board has lots of problems to deal with. And the fact that Pakistan could not host international cricket for a long time has been a big problem for them. Obviously when a country is not being able to host international cricket, and that has also been the case for so long, the parents of a lot of young kids who are interested in cricket are obviously more likely to say that cricket is not the right path to choose. At least not professionally. And that also causes a lot of problems.
Another thing that I am not very sure about but I have my doubts is that the Pakistan cricket board has a few corrupt individuals. They are also not helping the improvement of Pakistan cricket. And another thing is that as long as the selectors are not going to be unbiased, the national team is not going to improve.
Pakistan has produced a lot of world-class players. But I agree with you that the setup of Pakistan cricket is not very good, to be honest. And domestic setup is obviously not as it should be.
The country had a big break in hosting tournaments. The same keeps them down. They're are at the beginning of building new cricketing infrastructure within the country. As mentioned the domestic cricket is good, but not to the level of neighbouring countries. The Pakistan Super League is another setback, taking the revenue into consideration the importance might've moved towards it. Corruption is all around and there will be corrupt hands that truly destruct the progress.
It is true that when a country is away from international cricket for a long time then the common people do not have confidence in that country's cricket. Cricket infrastructure continues to crumble. But the situation in Pakistan cricket is slightly different. Even though they can't host any international matches in their own country, they try to cover it abroad. They have managed cricket in Abu Dhabi for almost a long time. All their franchise leagues are conducted at the same venue. They have tried to hold on to their cricket even through tough times. They have also suffered huge financial loss by conducting cricket in a foreign country. But overall they tried to improve from that position.