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Nobody with two brain cells will try any annexing, but what may happen in a hypothetical refugee flow?There's no way Pakistan would use nukes if india decides to try to annex Pakistani administered Kashmir.
Similarly, India wouldn't use nukes for the same case in J&K and Ladakh.
But there are multiple conventional warfare instruments such as missiles that are most likely to be used.
I don't think any neighbouring country in the world would use nukes against each other because of the fallout and if by some chance there was no mutual destruction, the eventual economic & refugee crisis would definitely end any hope of recovery.