There are two solutions. Learn the weak points of Taliban, be it is military action, economic blockade, diplomatic pressure, diplomatic concessions or whatever it may be. Let NSG eliminate the evils with minimal casualities. We are being perceived as a soft state and as a result we are being taken to ransom by terrorrists. This is a very difficult and trying situation.
Immediate response is to save the life of the hostages.
But in the long run this is a wrong course. This only ecourages the terrorists. The plane has to be stormed and take the chances of saving as many hostages as possible. Negotiation with the hijackers is alright but do not release the prisoners. The govt. should definitely release Maulana Masood in exchange for the passengers.