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Netanyahu called the conflict an existential war that must be fought until victory, despite pressure and costs.
The health ministry in the Hamas-run Gaza Strip says the war has killed more than 18,700 people, mostly women and children.
In a statement, a Pakistani Taliban group, the Tahreek-e-Jihad Pakistan (TJP), which has emerged recently and claimed several attacks in recent months, said its militants carried out the attack aimed at the Pakistani army.
An estimated 1.9 million of Gaza's 2.4 million people have been displaced. Gaza is on the verge of being overwhelmed by disease and starvation.
Israeli troops reached the heart of Khan Younis on Wednesday in a new phase of the war
The latest exodus leaves many displaced Palestinians increasingly cornered near the fortified Egyptian border.
The gunfight took place in the Tengnoupal district of Manipur.
UN said the fighting would worsen an extreme humanitarian emergency; Israeli forces had stopped all deliveries of aid into Gaza.
Under the terms of the Qatari-mediated deal, 30 Palestinians -- 16 minors and 14 women -- will be released on Wednesday in exchange.
Israel has vowed to destroy Hamas and rescue all remaining hostages.