World Bank Responds to India’s Suspension of the Indus Waters Treaty

The World Bank has reacted to India’s recent suspension of the Indus Waters Treaty with Pakistan by pointing out that its mandate is confined to certain roles spelled out in the treaty. The World Bank, as a guarantor, never interferes in the sovereign choices of its member countries.

India’s suspension of the treaty, after a terrorist attack in Jammu and Kashmir, has escalated tensions between the two countries. Whereas the World Bank stays neutral in the matter, the suspension signifies important issues concerning regional water security and the dangers of further conflict.

World Bank responds to India suspending Indus Waters Treaty with Pakistan

Days after India suspended Indus Waters Treaty with Pakistan following the terror attack in Pahalgam, a World Bank spokesperson said that it was a “signatory to the treaty for a limited set of defined… pic.twitter.com/wVTqS5ztJU

— Indian Infra & Geopolitics (@INDTechAndInfra) April 27, 2025

World Bank’s Role in the Indus Waters Treaty

The World Bank helped broker the Indus Waters Treaty in 1960. It divided the Indus River and its tributaries between India and Pakistan. India controls the three eastern rivers—Beas, Ravi, and Sutlej—while Pakistan controls the western rivers—Indus, Chenab, and Jhelum. Despite political tensions, the treaty has supported cooperation over shared water resources.

As guarantor of the treaty, the World Bank oversees its enforcement, extends financial assistance, and assists in the resolution of conflicts. It keeps away, though, from political and security issues. The spokesperson for the World Bank affirmed that it never comments on sovereign choices made by member nations.

India’s Suspension and Political Context

India froze the treaty following a fatal terrorist attack in Pahalgam, Jammu and Kashmir, that claimed 26 lives. The Indian government attributed the freeze to Pakistan’s purported backing of cross-border terrorism, terming it a national security issue. Indian officials also feared that Pakistan could exploit water as a weapon as tensions rose in Kashmir.

Pakistan denounced the action as illegal. Pakistani officials cautioned that any water supply disruption could be interpreted as an act of war. They added the suspension would merely raise tensions, further destabilizing the region, which has had a history of military conflict.

Regional Stability and the World Bank’s Role

India’s suspension is a significant escalation of the already tense relationship between the two nations. Water is crucial to both countries’ economies and diplomatic stability. Pakistan’s agricultural economy, which depends on the Indus River, is severely threatened if the treaty is not reinstated.

Though the World Bank has said it cannot become directly involved in the conflict, increasing tensions may induce the international community to become more involved in mediating the situation. The World Bank, as the initial broker of the treaty, may then be asked to assist in de-escalation.

India’s suspension of the Indus Waters Treaty has severe geopolitical implications. Although the World Bank has asserted its impartial position, its past involvement may still contribute to containing the fallout. The global community needs to keep a close eye on the situation, as extended water conflicts may further destabilize the region.