Software simulation in MPLAB can take hours to run through a PBP PAUSE command depending on the period.

Try PAUSEUS set to the absolute minimum delay period for the osc speed you're using. Or just comment out the PAUSE for software simulation.

If you really want to watch it simulate a long PAUSE, then you can speed things up by changing the MPLAB sim Animate step time.

In MPLAB click Debugger >> Settings, then select the Debugger Animation tab, and set Animate step time to 1mS.

That will help speed things up, but you'll still want to avoid long PAUSE periods during software sim.