World Bank president stresses Indus Waters Treaty cannot be unilaterally suspended

World Bank President Ajay Banga has reaffirmed that the Indus Waters Treaty (IWT) between Pakistan and India cannot be suspended unilaterally, emphasizing that any changes to the agreement require mutual consent from both nations. 

His comments come amid escalating tensions following India’s recent declaration to terminate the treaty in response to the events in Pahalgam last month, which has drawn widespread criticism from Pakistan.

In an interview with CNBC-TV18, Banga stated, “There is no provision in the treaty to allow for suspension the way it was drawn up. It either needs to be gone, or replaced by another one, and that requires the two countries to want to agree.” 

He reiterated that the World Bank’s role in the treaty is strictly facilitative, particularly in dispute resolution. The Bank does not arbitrate or enforce the treaty’s provisions but assists in initiating processes if the dispute-resolution mechanisms of the treaty are triggered.

He explained that the World Bank’s involvement, since the treaty’s creation in 1960, has been to ensure the functioning of the dispute-resolution processes, which could involve appointing a neutral expert or a court of arbitration. However, the Bank does not take sides in these matters.

Banga also clarified that the World Bank’s role is limited to maintaining a trust fund for the fees of experts involved in the treaty, stating, “We have to pay the fees of those guys through a trust fund that was set up at the Bank at the time of creation of the treaty. That’s our role. We have no role to play beyond that.”

The Indus Waters Treaty, which regulates the sharing of water between Pakistan and India, allocates control over the rivers flowing between the two countries. Any changes to this agreement require mutual consent, making India’s recent actions to suspend key provisions, including regulating water flow and withholding hydrological data, highly controversial.

Pakistan has firmly rejected India’s move, asserting that the treaty remains fully in force. In response to India’s actions, the Foreign Office (FO) reiterated that any attempt to suspend or violate the treaty would be unacceptable. 

FO spokesperson Shafqat Ali Khan emphasized that the treaty is an international obligation and must be honored. “There is no provision within the Indus Waters Treaty for it to be unilaterally suspended. It is fully in force and must be implemented in letter and spirit,” Khan stated. The FO confirmed that Pakistan will continue to advocate for its rights under the treaty at every relevant forum.

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