Do you really think by giving Kashmir to Pakistan will end the proxy war, if the answer is yes then you are living in a delusion? But I am not surprised I have seen many people giving the similar opinion based on economic, religious and ethnic reasons. Kasmir is just a starting point of breaking India into pieces based on Jihadi Ideology.
These so-called Intellectuals, human right activists have suddenly increased in number after observing India’s response towards terrorism. They simply want Azadi because they have a common religion with Pakistan.. then Bangl will ask for Azadi too and so on.
The proponent of this theory forget or do not wish to acknowledge that giving up Kashmir Jeopardises the existence of India, I would request you to just pick up any school atlas and turn over to page on State of Jammu & Kashmir and find where is Line Of Control,, you will be surprised to note the distance between IB in Jammu sector and Pathankot which is described as chicken neck and if you could spare time and browse internet just trying to find out strength of Pakistan army deployed in this sector .
As soon as we give up Kashmir, Pakistan army would have relieved resources in Kashmir sector and will be deployed on Jammu sector with aim to cut off Jammu Pathankot road on one side and Srinagar -Leh road on the other side, it would invite China and offer it Control and sovereignty over Laddhak on platter and in no time a combined army of Pakistan and China would be successful in isolating Siachin, Jammu, and Laddhak.
Once they are in Laddhak they would be staring at us across Rohtang pass and would run over Lahaul and Spiti in no time , meanwhile China would become adventures in East and would try to run over Sikkim threatening Chicken neck feature of Bagdogra and try to cut off Entire north east and would also try to get in Assam and Arunachal through Tawang.
Meanwhile looking at all these development all secessionist forces in Punjab, Assam, Nagaland, Manipur, Mizoram, Tripura will reinforce themselves and would be up in arms, in central India The Maoist and Naxalites would see this as an opportunity to intensify the rebellion against Indian state, latent secessionists movement across the country will become active…..
For Pakistan getting Kashmir is not the end game but starting of real struggle of occupying Delhi and unfurling Islamic flag once again on Red Fort.
Kindly do not start playing to galleries by bringing or talking about Indian armed forces , yes they will try to resist but no army can fight on so many fronts simultaneously and after decision to hand over Kashmir it would already be a demoralised force..and fighting on so many front cannot be managed by any army.
I understand that you can identify the places I named in the answer on Indian map. If not kindly make an effort to find about these places and stop thinking or giving reasons to build an opinion on giving Kashmir to Pakistan.