Please read your own military historians; it is more rewarding than concocting your own.
You also need to explain where the Indian Army occupied heights overlooking Pakistani-held territory; there are very few spots along the frontier where there is such a situation, and there was no harrassment of civilians even according to the Pakistan Army where there was such a situation.
First, you must be clear in your mind, if possible, about which event caused Gibraltar as a reaction, Indian Army occupying heights and harrassing Pakistani civilians, or the Rann of Kutch events.
Second, you should know that Brigadier Iftikhar Janjua attacked policemen guarding the Indian border with a full-scale military assault. It is difficult to understand why Pakistan should wish to offer a 'response' to the Rann of Kutch incident, having been the aggressor in every way.
Your ignorance of your own military history is abysmal. The capture of Haji Pir Pass had nothing to do with Grand Slam. Grand Slam had been prepared by Akhtar Husain Malik as a contingency plan against the failure of Gibraltar, and was implemented on the comprehensive failure of Gibraltar.
Again, read your history from your own sources. fatman17 has a thread on the 1965 war; consult that, he is a Pakistani and a very senior member of PDF, and his facts will make a mess of the argument that you have presented, very unwisely.
The battle was not even in full stride; where was there the question of 'losing'?
Everything Pakiaan did was a reaction. So no body can stop us from increasing the escalation ladder.