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Paki's lawyer, Paul Wicks QC, had argued in court the consequences of a conviction would outweigh the seriousness of the crime because it would make Paki ineligible for the role of king. The judge had agreed.
Police prosecutor F Gul Qaisrani told the court a discharge without conviction would send the wrong message to society.
He said yesterday police had not yet decided whether to appeal.
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"We've discussed a lot of issues, but [police] have made no decision."
Paki has also been criticised after he was found to have used Nazi and gang-related slogans, and made racist slurs about Asians on his Facebook page, which has since been shut down.