WB President Banga stressed that any amendments or suspension of the agreement required mutual consent from both nations.
India unilaterally hold the treaty in abeyance after the alleged false flag incident in Pahalgam last month—a move that has drawn strong criticism in Pakistan and is widely regarded as a breach of international commitments.
“There is no provision in the treaty that allows for suspension in the manner being suggested. It either has to be scrapped or replaced, and that can only happen if both parties agree,” Banga said in an interview with CNBC-TV18.
While clarifying that the World Bank does not enforce the treaty or arbitrate its provisions, Banga explained that the Bank plays a supporting role in facilitating dispute-resolution mechanisms outlined in the agreement.
In cases of disagreement, the Bank can assist with the appointment of a neutral expert or a court of arbitration, without taking any position itself.
“Our role is purely facilitative. The Bank helps initiate processes as per the treaty’s mechanisms, and funds the costs of appointed experts or arbitration through a dedicated trust fund established at the time of the treaty’s creation,” he said.
Brokered by the World Bank in 1960, the Indus Waters Treaty governs the distribution of water from the Indus River system between India and Pakistan.
It stipulates that any modifications require consensus between the two nations.
“It is their decision,” Banga stated, adding that the World Bank has not received any official notification from either country regarding recent developments.
Amid escalating tensions following the Pahalgam attack, India has moved to suspend key elements of the treaty unilaterally.
These include regulating water flow to Pakistan—particularly through the Chenab River—and halting the sharing of critical hydrological data. Additionally, India is reportedly considering extending its controversial flushing operations to the Kishanganga hydropower project on the Jhelum River.
In response, Pakistan’s Foreign Office (FO) reiterated that the Indus Waters Treaty is a binding international agreement that cannot be unilaterally suspended or violated.
FO spokesperson Shafqat Ali Khan stated that Pakistan had responded to India’s recent correspondence, making it clear that any breach of the treaty is unacceptable. “The Indus Waters Treaty is an international obligation that must be upheld,” he emphasised.
Khan further stressed that the treaty contains no clause permitting unilateral suspension. “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,” he said.
