Following a deadly attack in Kashmir, India unilaterally suspends the six-decade-old water-sharing agreement, raising concerns in Pakistan’s agricultural sector.
Key Takeaways:
i) India has announced the suspension of the Indus Waters Treaty with immediate effect, citing Pakistan’s alleged support for cross-border terrorism following a recent attack in the Baisaran Valley.
ii) The Indus Waters Treaty, brokered by the World Bank in 1960, has been a crucial agreement for sharing the waters of the Indus River system, a lifeline for agriculture in both India and Pakistan.
iii) The suspension of the treaty raises concerns about its impact on Pakistan’s water supply, particularly for irrigation purposes, as the treaty allocated the waters of the western rivers (Indus, Jhelum, and Chenab) to Pakistan.
Money Matters Monitoring – In a significant development that could exacerbate already strained relations between the two neighboring countries, India has announced the suspension of the Indus Waters Treaty (IWT), a 65-year-old agreement concerning the sharing of waters from the Indus River basin. The decision, as reported by various media outlets including Reuters, comes in the wake of a deadly terrorist attack in the Baisaran Valley of Indian-administered Kashmir.
According to a statement by the Indian Foreign Secretary on Wednesday, April 23, 2025, “[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.],” signaling a direct link between the treaty’s suspension and India’s accusations of Pakistani involvement in the recent attack.
The Indus Waters Treaty, signed on September 19, 1960, in Karachi, with the World Bank as a mediator, has long been considered a cornerstone of regional cooperation, having survived multiple wars and periods of intense diplomatic hostility. The treaty delineated the rights and obligations of both countries regarding the use of the Indus River system’s six rivers. Under the agreement, India was granted control over the three eastern rivers – the Beas, Ravi, and Sutlej – while Pakistan received control over the three western rivers – the Indus, Jhelum, and Chenab.
Crucially, the treaty mandates that India must allow the waters of the western rivers to flow into Pakistan, with limited exceptions for domestic use, non-consumptive uses like power generation, and some agricultural use. While India is permitted to develop hydroelectric projects on these western rivers, these projects are subject to strict conditions to prevent any significant alteration to the natural flow of water to Pakistan.
The suspension of the treaty has triggered immediate concern in Pakistan, where the Indus River system is the primary source of water for its vast agricultural lands. The treaty ensured a predictable supply of water, which is vital for the country’s food security and economy. Any disruption to this flow could have severe consequences, particularly in the provinces that heavily rely on irrigation from these rivers.
Analysts anticipate that this move by India could lead to a further deterioration of bilateral relations and potentially impact regional stability. The long-term implications for water resource management and agricultural practices in Pakistan remain uncertain.
The treaty also established the Permanent Indus Commission, comprising commissioners from both countries, to address any queries or disputes related to the implementation of the agreement. It remains to be seen what role this commission can play in the current scenario.
