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What is The Indus Water Treaty: History, Provisions, and Current Status

By, 

Miyuru Rasoj- Colombo

The Indus Waters Treaty (IWT) is a landmark water-sharing agreement between India and Pakistan, brokered by the World Bank and signed on September 19, 1960. 

Its primary aim is to regulate the use and distribution of the waters of the Indus River system, which is vital for the livelihoods and economies of both countries.


Background and Historical Context

Following the partition of British India in 1947, both India and Pakistan inherited parts of the vast Indus river system, which flows from Tibet through India into Pakistan and onward to the Arabian Sea. 

The division of the rivers and their headworks led to immediate disputes, as upstream India gained control over water sources critical to downstream Pakistan’s agriculture and development.


Tensions peaked in 1948 when India temporarily stopped water supplies to Pakistan, prompting international intervention. 

The World Bank mediated negotiations, culminating in the Indus Waters Treaty after nearly a decade of talks.


Key Provisions of the Treaty

  • Division of Rivers:

        The Indus system comprises six major rivers. The treaty divides these into two              groups:

    • Eastern Rivers: Ravi, Beas, and Sutlej - allocated for India’s exclusive use.
    • Western Rivers: Indus, Jhelum, and Chenab - allocated primarily to Pakistan, with India permitted limited use for irrigation, domestic needs, and non-consumptive purposes such as hydropower generation.
  • Water Allocation:

Pakistan receives about 70-80% of the total water flow, making the treaty unusual in granting the downstream country a larger share of water.

  • Project Permissions:

India can develop hydroelectric projects on the western rivers, provided they do not significantly reduce water flow to Pakistan. Detailed technical guidelines govern such projects to prevent disputes.

  • Permanent Indus Commission:

The treaty established a bilateral commission to monitor implementation, exchange data, and resolve disputes. This mechanism has functioned even during periods of war and high political tension.

  • Dispute Resolution:

The treaty provides for neutral experts and international arbitration in case of disagreements, with the World Bank playing a facilitating role358.


Significance and Longevity

The IWT is often cited as one of the world’s most successful examples of transboundary water cooperation. 

It has survived multiple wars and diplomatic crises between India and Pakistan, ensuring a stable framework for water sharing for over six decades.


Recent Developments

In April 2025, India announced the suspension of the Indus Waters Treaty following a deadly attack in Pahalgam, Kashmir, which it blamed on Pakistan based militants. This unprecedented move has raised concerns about the future of water cooperation in the region and the potential for increased tension over this critical resource.


Implications

For Pakistan:

The suspension threatens Pakistan’s access to the Indus, Jhelum, and Chenab rivers, which are essential for its agriculture and water supply. 

While India cannot immediately stop the flow due to technical and seasonal factors, the move signals a major shift in regional water politics.

For India:

The suspension is seen as a diplomatic and strategic tool, but any major alteration in water flows could have ecological and political repercussions.


The Indus Waters Treaty remains a cornerstone of India-Pakistan relations and a global model for water sharing agreements. 

Its future, however, is now uncertain amid renewed tensions and its recent suspension by India, a development that could have far reaching consequences for both nations and the wider region.


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