The Indus Waters Treaty: A Model of

Water Diplomacy in South Asia

Introduction
The Indus Waters Treaty (IWT) is one of the most enduring and successful examples of
water-sharing agreements in the world. Signed in 1960 between India and Pakistan under the
auspices of the World Bank, it governs the allocation and management of the waters of the
Indus River and its tributaries. Despite numerous geopolitical tensions, wars, and cross-
border conflicts, the treaty has remained largely intact and operational. As such, it is often
cited as a model of cooperative resource management, even between hostile nations.
However, in recent years, geopolitical shifts, climate change, and security concerns have
brought new challenges to its relevance and effectiveness.

Historical Background
The Indus River system, originating in the Tibetan Plateau and flowing through India and
Pakistan into the Arabian Sea, is one of the largest river basins in the world. It comprises six
main rivers: the Indus, Jhelum, Chenab, Ravi, Beas, and Sutlej. Before the partition of British
India in 1947, the entire basin was managed as a single hydrological unit. However, partition
created two nations—India and Pakistan—with the headwaters of the system located in India
and the lower reaches in Pakistan. This geographic split raised fears in Pakistan about its
dependence on water resources controlled by India.

In 1948, India temporarily stopped the flow of water to Pakistan from the canals originating
in Indian territory, prompting alarm and underscoring the urgency of a formal agreement.
Mediation by the World Bank led to years of negotiations, culminating in the signing of the
Indus Waters Treaty on September 19, 1960, by Indian Prime Minister Jawaharlal Nehru and
Pakistani President Ayub Khan.

Key Provisions of the Treaty

The Indus Waters Treaty divided the river system into two parts:

1. The Western Rivers

 Indus, Jhelum, and Chenab

 Allocated to Pakistan for unrestricted use
 India is allowed non-consumptive uses such as hydropower generation, navigation,
and fishing, subject to detailed regulations and design constraints
2. The Eastern Rivers

 Ravi, Beas, and Sutlej

 Allocated to India for exclusive use
 India was required to allow continued flow for a transition period while developing
alternative irrigation infrastructure for Pakistan, financed in part by the World Bank
and other donors

Dispute Resolution Mechanism

 A Permanent Indus Commission (PIC) was established, comprising one

commissioner from each country, responsible for exchanging data, conducting
inspections, and addressing routine questions.
 In case of disputes, a tiered mechanism is followed:
o Bilateral negotiation through the PIC
o Neutral Expert appointed by the World Bank
o Court of Arbitration in case of more serious disagreements

Significance of the Treaty

The Indus Waters Treaty is significant for several reasons:

1. Peaceful Resource Sharing

It is one of the few agreements between India and Pakistan that has remained operational
through wars (1965, 1971, and 1999) and persistent border skirmishes.

2. Legal and Institutional Framework

The treaty provides a robust legal and institutional framework, which includes regular
meetings, inspections, and dispute resolution mechanisms, ensuring continuous dialogue
between the two nations.

3. Economic Importance

For both countries, especially Pakistan, the Indus River system is vital for agriculture, which
forms the backbone of their economies. Nearly 90% of Pakistan’s agricultural output depends
on irrigation from the Indus basin.

4. Model for Other Regions

The IWT is often cited as a model for international water treaties, demonstrating that
cooperation is possible even between adversarial nations when it comes to shared natural
resources.
Challenges and Criticisms
Despite its longevity, the Indus Waters Treaty faces growing challenges in the 21st century.

1. Geopolitical Tensions

In recent years, terrorist attacks and border clashes have raised questions about the treaty’s
viability. Following the 2016 Uri attack and the 2019 Pulwama bombing, there were calls in
India to review or suspend the treaty. Though these were not acted upon, they indicate the
treaty's vulnerability to political developments.

2. Disputes Over Projects

Several Indian hydropower projects on the western rivers—such as the Baglihar Dam (on
Chenab) and Kishanganga Project (on Jhelum)—have triggered disputes. Pakistan alleges
that these projects violate the treaty by affecting downstream flows, while India insists they
comply with the treaty’s technical specifications. These disputes have necessitated arbitration
or the involvement of neutral experts.

3. Climate Change

Climate variability is altering rainfall patterns, glacial melt, and river flows in the Himalayas.
These changes challenge the treaty's assumptions about flow availability and may require
future renegotiation or updates to cope with increased unpredictability.

4. Population Growth and Water Demand

Both countries are facing rising populations and growing water demand for agriculture,
industry, and domestic use. Pakistan, in particular, is classified as a water-stressed country
and may face acute shortages without new storage projects. The treaty’s allocation
framework, fixed decades ago, does not accommodate these evolving needs.

India’s Position
India maintains that it has complied fully with the treaty and has, in fact, been generous in its
implementation. It asserts that its rights over the eastern rivers are exclusive, and its
utilization of the western rivers remains within treaty-permitted limits. However, calls for the
"maximum utilization" of India’s share have gained traction in response to Pakistani-
sponsored terrorism. The Indian government has emphasized building more storage and
hydroelectric projects on its share to strengthen water security and geopolitical leverage.
Pakistan’s Concerns
Pakistan views the Indus basin as its lifeline and is especially sensitive to upstream Indian
activities. Its objections often stem from fears that India could use water as a strategic
weapon, even though the treaty does not allow India to stop or divert the flow of the western
rivers. Additionally, Pakistan suffers from poor water infrastructure, aging canals, and limited
reservoir capacity, which exacerbate its dependence on predictable flows.

International Mediation and the Role of the World Bank

The World Bank continues to play a limited but important role, especially when disputes
reach a level requiring third-party mediation. In recent years, both countries have taken
different routes within the treaty’s dispute resolution framework, with Pakistan preferring
arbitration and India favoring the neutral expert process. The World Bank's challenge has
been to balance both sides while ensuring treaty integrity.

Calls for Treaty Modernization

Several water policy experts argue that the treaty needs modernization to address
contemporary challenges such as:

 Data Sharing and Transparency: Improved real-time data exchange and joint
monitoring could reduce misunderstandings.
 Environmental Concerns: Provisions for environmental flows and ecosystem
sustainability are largely absent in the original treaty.
 Climate Adaptation: The treaty lacks a mechanism for dealing with climate change
impacts and extreme weather events.

However, any attempt to renegotiate the treaty would require considerable political will and
mutual trust—both currently in short supply.

Recent Developments
In the aftermath of the 2025 Pahalgam terror attack, India reportedly suspended the Indus
Waters Treaty as part of a broader downgrade of diplomatic relations with Pakistan. This
marked a dramatic shift from decades of adherence and has raised international concern.
Analysts warn that weaponizing water could lead to serious humanitarian and environmental
consequences and may set a dangerous precedent in international water law.

International bodies, including the United Nations and the World Bank, have urged both
nations to return to dialogue and uphold the principles of cooperation that the treaty
embodies.
Conclusion
The Indus Waters Treaty is a testament to the possibility of cooperation even in the face of
deep-rooted conflict. For over six decades, it has helped avert water wars and facilitated
dialogue between India and Pakistan. However, new challenges—climatic, political, and
technological—now test its resilience.

Preserving the treaty in its current or updated form requires political maturity, scientific
input, and robust diplomacy. The future of the Indus basin, and by extension the stability of
South Asia, may well depend on how both nations choose to manage this critical shared
resource in the years ahead.