Pahalgam terror attack: What is Indus Waters Treaty?
Brokered by the World Bank, which is also a signatory, the treaty sets out a mechanism for water sharing and information exchange.
The government said on Wednesday that the World Bank-brokered Indus Waters Treaty of 1960 with Pakistan will be suspended in response to the terror attack in Jammu and Kashmir's Pahalgam that killed at least 26 people.
The Indus River system is a lifeline for both countries, particularly for Pakistan, where agriculture relies heavily on its waters. A suspension of water sharing under the treaty could have devastating consequences for drinking water availability and cropping, given the impact of climate change on the Indus River basin.
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The NDA government convened an urgent meeting of the Cabinet Committee on Security, headed by Prime Minister Narendra Modi, and announced several measures against Pakistan, while also acknowledging cross-border linkages to the attack.
“The Indus Waters Treaty of 1960 will be held in abeyance with immediate effect, until Pakistan credibly and irrevocably abjures its support for cross-border terrorism,” said foreign secretary Vikram Misri at a press conference after the meeting.
What is the Indus Waters Treaty of 1960?
Brokered by the World Bank, which is also a signatory, the treaty sets out a mechanism for water sharing and information exchange between the two nuclear-armed neighbours for the use of the Indus River water and its five tributaries Sutlej, Beas, Ravi, Jhelum, and Chenab. The treaty was signed after negotiations for over nine years which followed the first war over Kashmir.
Former US President Dwight Eisenhower described it as “one bright spot ... in a very depressing world picture that we see so often.”
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It allocates waters from the Western rivers (Chenab, Jhelum and Indus) to Pakistan and the Eastern rivers (Ravi, Beas and Sutlej) to India for unrestricted use. India is allowed to extract water from the western rivers for certain non-consumptive, agricultural, domestic use and hydroelectric power generation.
Provision under Article III (4) of the treaty states that India “shall not store any water of, or construct any storage works on, the Western Rivers,” other than those permitted by the provisions.
How does it work?
The treaty established a Permanent Indus Commission, with a commissioner from the two countries. The official, typically a high-ranking engineer, acts as the representative of their government for all matters arising out of the treaty and serves as the regular channel of communication between New Delhi and Islamabad on all matters relating to its implementation.
According to the World Bank, the “questions” under the treaty are handled by the Commission, “differences” are to be resolved by a neutral expert and “disputes” are to be referred to an ad hoc arbitral tribunal called the “Court of Arbitration”.
The World Bank’s role is limited and procedural under the treaty. In case of differences and disputes, its role is limited to the designation of individuals to fulfil certain roles in the context of Neutral Expert or Court of Arbitration proceedings when requested by either or both of the parties.
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India's call for review
India formally informed Pakistan of its intent to review the treaty in early 2023 and issued a formal notice in August 2024 under Article XII (3) in line with those efforts. New Delhi has cited fundamental change in demographics and other conditions to call for a review of the treaty.
India has also blamed Pakistan for failing to engage constructively to review the treaty. Article XII (3) says that “The provisions of this Treaty may from time to time be modified by a duly ratified treaty concluded for that purpose between the two Governments.”
Pakistan has also disputed India's Kishanganga and Ratle hydropower projects on the Chenab and Neelam rivers. New Delhi has objected to Islamabad's decision to raise disputes in both the “neutral expert” mechanism and the Permanent Court of Arbitration, saying it may lead to contradictory rulings. India has urged Pakistan to make use of graded mechanisms under the treaty.
