In a major diplomatic turn, the World Bank has strongly disassociated itself from news that it would mediate India’s decision to put on hold the Indus Water Treaty (IWT) with Pakistan. The refusal is a setback to Islamabad, which had promised to take its protest to the international financial institution after India described the move as “unilateral and illegal.”
World Bank Clarifies Its Role
Against the backdrop of increased tensions between the two neighbours, World Bank President Ajay Banga has made it categorically clear that the institution will play only its chartered role under the treaty. “There’s a lot of speculation in the media about how the World Bank will step in & fix the problem but it’s all bunk. The World Bank’s role is merely as a facilitator,” Banga was quoted by India’s Press Information Bureau (PIB). This clarification serves to shut the door on Pakistan’s hopes of employing the World Bank as leverage to turn around India’s position.
“We have no role to play beyond a facilitator. There’s a lot of speculation in the media about how the World Bank will step in & fix the problem but it’s all bunk. The World Bank’s role is merely as a facilitator,” World Bank President, Ajay Banga on Indus Waters Treaty… pic.twitter.com/s19jkAl7WG
— ANI (@ANI) May 9, 2025
India Responds After Kashmir Terror Attack
India suspended the treaty after a terror attack in Jammu and Kashmir that claimed 26 civilians’ lives. The Indian government cited “irrefutable proof” of Pakistani nationals’ participation in the attack.
Consequently, New Delhi not only suspended the treaty but also took other stringent diplomatic actions, such as closing the Attari-Wagah border, cancelling visas for Pakistani nationals, and expelling military officials from its soil.
India’s Long History of Adherence to the Treaty
Indian Foreign Secretary Vikram Misri, in a news conference on May 8, stated that India was forced into action following a series of provocations and hindrances by Pakistan. “We sent several letters to them, requesting for negotiation to discuss modification of this treaty. India has, for six plus decades, honoured this treaty,” Misri stated. He further added, “Pakistan is the one which has been acting in violation of this treaty. Pakistan is the one acting in violation of treaty, deliberately creating roadblocks in India exercising its legitimate rights over the western rivers.”
Understanding the Indus Water Treaty
The IWT, which was originally facilitated by the World Bank in 1960, clearly specified the division of the Indus River system. Accordingly, India was assigned complete rights to the Eastern rivers — Ravi, Beas, and Sutlej — while Pakistan, on the other hand, was awarded the Western rivers — Indus, Jhelum, and Chenab. The treaty does permit India some rights to the Western rivers for non-consumptive purposes like domestic use, farming, and hydroelectric projects, but forbids large-scale storage.
Despite this, India has traditionally respected the provisions. Yet, New Delhi authorities claim that Islamabad has consistently breached the spirit of the deal and used legal and procedural means to inhibit legitimate Indian projects.
