Indus Waters Treaty

Indus Waters Treaty

Why in News? 

Recently, after the terrorist attack in Pahalgam, Jammu & Kashmir, India has taken a tough stance towards Pakistan. In a meeting chaired by the Prime Minister, the Indian government has decided to suspend the Indus Waters Treaty.

What is the Indus Waters Treaty (IWT)?

• The Indus Waters Treaty is a historical and international water agreement between India and Pakistan.
• This treaty ensures the equitable use of the Indus river system waters that flow between the two neighbouring countries.
• On 19 September 1960 this treaty was signed between two countries India and Pakistan.
• In this treaty, the World Bank played the role of a mediator, which proved to be a key step in resolving water disputes between the two countries.
• The main aim of the agreement was to ensure fair distribution of water resources of the Indus River and its five tributaries — Sutlej, Beas, Ravi, Jhelum, and Chenab.
• A clear and structured framework for the distribution of water was established under the treaty.
• The six major rivers of the Indus river system were divided into two parts under the treaty. The eastern rivers were allocated to India and the western rivers to Pakistan.
• Under this agreement, India was allowed limited irrigation and non-consumptive use (like hydroelectric power generation) of the western rivers.
• India was also required to notify and follow an objection resolution process before starting any project on these rivers.

Historical Background of the Indus Waters Treaty

• The treaty emerged from serious water disputes between independent India and newly created Pakistan.
• When India was partitioned in 1947, the main sources of the Indus river system were in India, while the rivers flowed through Pakistan’s territory.
• After Partition, India gained control of the canal system in East Punjab. 
• In April 1948, India temporarily stopped water supply to Pakistan, creating an irrigation crisis there.
• Diplomatic tensions grew between the two countries over control of water resources.
• Amid this, the World Bank offered to act as a neutral mediator.
• Following this proposal, from 1952 onwards, representatives from India and Pakistan held continuous meetings and technical discussions under the presence of the World Bank.
• Finally, on 19 September 1960 both countries signed the Indus Waters Treaty in Karachi. 
• This was signed between India’s Prime Minister Jawaharlal Nehru and Pakistan’s President General Ayub Khan.

Key Provisions of the Indus Waters Treaty

• Regulation of Water Distribution: The treaty clearly distributed the use of water from the six rivers — Indus, Chenab, Jhelum, Ravi, Beas, and Sutlej.
  • The division of water was based on the geographical location of the rivers.
  • Pakistan received three western rivers – Indus, Chenab, and Jhelum.
  • India received three eastern rivers – Ravi, Beas, and Sutlej.
  • As a result, 80% of the water went to Pakistan and 20% to India.
• Establishment of Permanent Indus Commission: 
  • This treaty established a Permanent and Well defined Indus Commission for both countries.
  • Its objective is to resolve water-related disputes between the two nations.
  • This commission holds at least one annual meeting, where discussions take place on water flow, proposed constructions, inspection tours, and data exchange.
  • The commission is considered a key pillar in maintaining transparency and trust in water management.
  • It has functioned even during three wars, reflecting its stability and diplomatic flexibility.
• Three-Tier Dispute Resolution Mechanism: If disputes arise over water projects, the treaty provides a three-level resolution process.
  • First, the dispute is handled by the Permanent Commission. 
  • If that fails, the case is referred to a Neutral Expert. 
  • If technical or legal differences deepen, the matter goes to a Court of Arbitration.
• Transparency and Inspections: Under the treaty, both parties are required to give prior notice about any new water project.
  • This includes annual data exchange, river basin inspections, and sharing of technical information between the two countries.
  • Both parties must submit reports on treaty violations, although these reports are rarely made public.

Major Projects and Disputes under the Indus Waters Treaty

• Baglihar Hydroelectric Project (450 MW): This project is located on the Chenab River in Jammu & Kashmir. Pakistan alleged that the project violates the treaty provisions because it has water storage capacity beyond the permissible limit. This dispute was referred to a Neutral Expert appointed by the World Bank, who allowed India to proceed with the project after some technical changes.
• Kishanganga Hydroelectric Project (330 MW): This project is located in Bandipora, Jammu & Kashmir, and diverts the water of Kishanganga River (called Neelum River in Pakistan) through a tunnel into the Jhelum Basin for power generation. Pakistan objected, saying the diversion of the river’s natural flow would affect its ecology and irrigation. 
• Pakal Dul Hydroelectric Project (1,000 MW): This project is located on the Marusudar River, a tributary of the Chenab River. It stores water in an upper reservoir for power generation. Pakistan fears India can control the flow of water. Although the project is of the RoR type under the treaty, its storage capacity remains a matter of dispute.
• Ratle Hydroelectric Project (850 MW): This project is also located on the Chenab River and has been one of the most controversial in recent years. Both sides had conflicting positions on this issue.

Changing Perspective on the Indus Waters Treaty

The Indus Waters Treaty, signed between India and Pakistan in 1960, has been a symbol of long-term water cooperation, but in recent years it has seen significant political shifts.

• In 2023, India formally issued a notice for the review and modification of the treaty for the first time.
  • This move was in light of disputes related to strategic RoR projects like Kishanganga and Ratle.
• In 2024, India issued a second notice, reiterating the demand for broad amendments in the treaty.
  • India does not see the treaty as a permanent document and seeks changes under Article XII(3) of the treaty, which allows adjustments as per current security and climate conditions.
• In 2025, after a terror attack in Pahalgam, Jammu & Kashmir, India decided to suspend the Indus Waters Treaty.
  • At the international level, India also refers to Article 62 of the Vienna Convention, which allows withdrawal from a treaty if there is a fundamental change in circumstances.

Impact of Indus Waters Treaty Suspension on Pakistan

• Food crisis risk: More than 80% of Pakistan’s agricultural land depends on the Indus River system. If India controls the river flow after suspension, Kharif and Rabi crops may not receive enough water. This could reduce the production of key crops like wheat, rice, and cotton, affecting both internal food security and export-based economy.
• Urban water supply problem: The Indus and its tributaries fulfill the domestic water needs of big cities like Lahore, Karachi, and Islamabad. If India alters water flow, these cities may face a severe water crisis. It could lead to a public health emergency and intense pressure on the water distribution system.
• Energy crisis: Pakistan’s hydroelectric sector is largely dependent on the Indus River system. If water is stopped or becomes unstable from upstream, major reservoirs like Tarbela and Mangla may face low water levels. This would disrupt thousands of megawatts of electricity, causing industrial decline and power cuts in households.
• Strategic risks: India has the ability to share or withhold crucial river flow data. If India withholds this data, Pakistan’s flood forecasting systems will be badly affected. This would obstruct water resource management and limit Pakistan’s ability to respond to emergencies.

Way Forward

• Treaty review: The Indus Waters Treaty needs to be redefined in view of 21st-century climate realities, population growth, and rising water demand. Both countries should mutually amend the treaty under Article XII(3) to ensure sustainable use of river waters.
• Inclusion of transparency: To reduce future conflict, India and Pakistan must develop a real-time data-sharing system for river flow, rainfall data, and reservoir conditions. This would help rebuild trust.
• Establishment of joint water management framework: Both countries should jointly form an institutional mechanism like the Indus Basin Water Authority, which can monitor water plans, resolve disputes, and evaluate sustainable development projects.