World Bank President Says Indus Waters Treaty Cannot Be Suspended

Wed May 14 2025
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NEW DELHI: World Bank President Ajay Banga has said there is no provision in the Indus Waters Treaty (IWT) that allows either India or Pakistan to suspend the agreement, countering New Delhi’s recent announcement of placing the treaty in “abeyance.”

Speaking to Indian broadcaster CNBC-TV18 in New Delhi, Banga clarified, “There is no provision in the treaty to allow it to be suspended. The way it was drawn up, it either needs to be gone or it needs to be replaced by another one. That requires the two countries to want to agree.”

He noted that the Indian government had put the treaty “in abeyance,” rather than formally suspending it. However, under the terms of the treaty, there is no legal mechanism for such a move.

Signed in 1960 and brokered by the World Bank, the Indus Waters Treaty governs the allocation and management of water from six rivers that flow from India into Pakistan.

The treaty has long been hailed as one of the most durable agreements between the two nuclear-armed neighbours, surviving wars and prolonged periods of diplomatic tension.

Article XII of the treaty explicitly states that it can only be modified or terminated through mutual agreement by both parties.

Outlining the World Bank’s role, Banga said the institution acts as a facilitator in case of disputes. “It’s not our job to make a decision. Our role is to facilitate a process—either to identify a neutral expert or set up a court of arbitration if both sides agree,” he said.

Banga added that the World Bank is also responsible for financing the arbitration process through a trust fund established when the treaty was signed.

The development comes against the backdrop of rising tensions between India and Pakistan following the attack in the Pahalgam area of Indian Illegally Occupied Jammu and Kashmir (IIOJK) on 22 April, which killed 26 people.

India swiftly blamed Pakistan for the incident without providing any credible evidence. Pakistan condemned the attack and strongly denied the allegations. Pakistan repeatedly offered a neutral and transparent international investigation, a proposal to which New Delhi did not respond. Instead, India continued with its aggressive posture.

The situation escalated further when on May 7, India launched predawn attacks on several Pakistani cities. Islamabad promptly responded to the attacks.

Pakistan claimed that its armed forces shot down five Indian fighter jets, destroyed a brigade headquarters and several military posts. Pakistan’s armed forces also shot down and destroyed 77 Indian drones.

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