One has to see history to understand the depressing situation of Pakistan. Whenever there is conflict with India, it was Pakistan that lost big. Only in the early 1990s could Pakistan use expandable jihadis to do it's bidding against India, which was extremely cost effective at hurting India. Congress govt of India was also pro peace during that time and hence did not exact cost against Pakistan.
Now the situation is different, BJP govt is agressive, they understand the ideology of islamic Pakistan and know that even if india surrenders everything, Pakistan due to being islamic cannot tolerate Hindus living freely outside the control of islam. Living as second class citizen under islamic rule is just about bearable to them.
Hence, this conflict cannot be solved by giving territory. Pakistani use of expandable jihadis cannot be allowed without extracting a very heavy price, hence Modi govt will definately increase the cost for Pakistan.