I’m not really that familiar with Iggy Pop, but can I just say something: calling someone a Paki is essentially similar to calling a British person a Brit and an Australian an Aussie. I do know that Paki has a history of being used as a derogatory term but you have to look at the context.
Iggy said he learnt this questionable saying from some English friends – whether they’re racist or not I don’t know – and video footage shows Iggy saying this with no malice at all, neither any hint of subtle bigotry. In fact alarm bells would ring if he said the PC “Pakistani shops” but with the tone of an NF supporter.
Paki is an entirely different word to the N word, but similar to Paddy which too can either be affectionate or derogatory dependent on tone. It’s not saying it that makes you racist it’s how you say it. And you don’t have to be another South Asian to qualify using it to someone, but just in case, it’s worth knowing what the person feels about the word. I admit at times it feels wrong but I also understand it’s short hand to relax the tongue. The same goes for the N word to a black person. I however do not like that word and do not wish to type it.