You have put forward a very weak argument. But nevertheless I will repeat what I had said in one of my posts.
Now if the chancellor is backtracking or apologizing, which I don't think is the case either, is a different story altogether. But India media quoted exactly what she said, with no misleading information. I had addressed that to a Chinese poster & many other posters who started jumping on Indian media.
Regarding translation - it wasn't translated by an Indian translator. It was a German. And even if it were an Indian, we haven't yet mistranslated official remarks of a head of the state visiting India standing by Indian PM on national TV. And we are not starting now. Whatever German charge d affaires (or whoever) issues now if says it wasn't Pakistan specific, then it will be a clear case of backtracking rather than explaining what was meant. Till then it is not a retraction or 'cold water' or anything, it is official statement of the head of the Germany until something signed by her or her designate says otherwise.