Prime Minister Shaukat Aziz said the government would allow Ghazi to be held under house arrest with his ailing mother if he surrenders and frees the trapped women and children.
Unidentified militants fired at the president's aircraft as it was taking off from the Chakala air base.
Several students said they would never return to the madrassa, even if conditions return to normal.
The storm will wreak havoc not just in Pakistan but around the world, which still has its eyes tightly shut to the silent revolution sweeping through Pakistan.
Aziz vowed to enforce Sharia in the country even if the government did not itself do so, saying the Sharia would be enforced at any cost for which the whole nation should support the mosque's management.
As is clear to the West as well, Pakistan is at the crossroads.
No one has taken responsibility for the attack.
A Pakistani court on Friday issued non-bailable arrest warrant against former military dictator Pervez Musharraf and ordered police to present him in the court in the murder case of Lal Masjid cleric Abdul Rashid Ghazi, who was killed in a military operation in 2007.
Pakistan's new Army Chief has begun setting the stage to act against groups like LeT and JeM
Bhutto was killed in a gun-and-bomb attack during an election campaign rally on December 27, 2007 outside the Liaquat Bagh in Rawalpindi.
After initial hiccups, Pakistani state negotiators and a Taliban-nominated committee met at an undisclosed location on Thursday to frame a roadmap for parleys aimed at ending terrorism and bringing peace to the country.
Authorities in Pakistan have frozen bank accounts with more than Rs 400 million of over 5,100 terror suspects, including JeM chief Masood Azhar who is under "protective custody" after the terror attack on the Pathankot air base, officials said.
When asked to explain, Musharraf, 73, said Gen Sharif played a role in "releasing the pressure" on courts to prevent him from leaving the country.
The maiden meeting between the Pakistan government and a Taliban-nominated committee to frame a roadmap for peace talks was postponed on Tuesday, with representatives of the banned group claiming state negotiators had pulled out under "pressure".
About 2,000 activists of Tehreek-i-Khatm-i-Nabuwwat, Tehreek-i-Labaik Ya Rasool Allah and the Sunni Tehreek Pakistan for more than two weeks have been blocking the Islamabad Expressway and Murree Road that connect Islamabad with its only airport and the garrison city of Rawalpindi.
India must watch for signs after Peshawar that Pakistan is waking up to the dangers of Islamism, muses Ajai Shukla
Both nations have to find ways to be sensitive to each other's politico-strategic and economic concerns, say Dr Rahul Mishra and Sana Hashmi.
Former Pakistani dictator Pervez Musharraf has sought "forgiveness" for any wrongs he may have committed during his nine-year regime, saying he will face all cases against him and not flee the country like a coward.
Even as France mourns the bloodiest terrorist attack for 20 years, let's take a look at some major standoffs witnessed in the past:
WWhat Pakistan faces in the Tehrik-e-Taliban Pakistan is virulent insurgency and terrorism, fuelled by its association with Al Qaeda
Hemal Trivedi, a Hindu filmmaker originally from India, and Mohammed Ali Naqvi, a Muslim from Pakistan have made one of this year's most talked about films.
'Whether it's investments in Kashmir, building naval facilities, or selling top-of-the-range military equipment, Pakistan could well benefit more under Xi's watch.' 'Do Chinese concerns about the 'Islamisation' of Pakistan give it pause about how quickly to move forward with security and economic projects? At the moment the indication is quite the opposite: China is doubling down on its support to Pakistan, partly because of its fears about where the country is headed.'
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