Indus Waters Treaty: The 1960 pact that refuses to leave the limelight of India-Pakistan tensions

For more than six decades, the Indus Waters Treaty has governed one of the most sensitive issues between India and Pakistan, the sharing of the waters of the Indus river system.

Signed in 1960 after nearly a decade of negotiations, the treaty has survived wars, confrontations and diplomatic crises between the neighbours. But its durability has increasingly come under strain, particularly over India's plans to develop hydropower projects on rivers and Pakistan's objections to those.

Also Read: Pakistan urges India to engage with it constructively within Indus Water Treaty framework


The latest rupture came after the April 2025 attack in Pahalgam, in which 26 people, mostly tourists, were killed. India attributed the attack to militants and identified Pakistani nationals among the attackers, while Pakistan denied any involvement. India subsequently announced that it was placing the Indus Waters Treaty in 'abeyance'.

The move was followed by a sharp military confrontation in May, with India launching Operation Sindoor against Pakistan. After several days of fighting, the countries agreed to stop military action. The treaty, however, remained suspended.

In August 2026, the Court of Arbitration in The Hague ruled that the treaty remained in force and said India must observe obligations under the pact. India rejected the ruling and said the panel had no jurisdiction over sovereign decisions or hydropower projects.

"For the time being, it seems that India’s focus is on the completing the ongoing projects on the three western rivers that have been stalled at various stages because of Pakistan’s continuous objections," said Dr Mushtaq Hussain, Assistant Professor of Political Science at BITS Law School.

What exactly is the Indus river system?

The Indus basin stretches across China, India, Pakistan and Afghanistan and supports millions of people. The Indus, one of the world's major rivers, rises in the Tibetan Plateau and flows through Ladakh before entering Pakistan and eventually reaching the Arabian Sea.

The river system consists of the Indus and five major tributaries: the Jhelum, Chenab, Ravi, Beas and Sutlej. Under the Indus Waters Treaty, these six rivers are divided into two groups.

Also Read: India tells arbitration court Indus order holds no water

The three Eastern Rivers — Ravi, Beas and Sutlej — were allocated for India's unrestricted use, subject to certain treaty provisions.

The other three Western Rivers were allocated for Pakistan's unrestricted use, while India retained specified rights to use their waters for purposes such as domestic needs, agriculture and hydropower, subject to restrictions.

The treaty also created procedures for managing disagreements. The Permanent Indus Commission, with one commissioner from each country, was established to oversee implementation and facilitate the exchange of information.

For technical differences, the treaty provides for a Neutral Expert, while certain disputes can be taken to a Court of Arbitration. The World Bank's role is largely procedural, including making appointments under these mechanisms.

Why was the treaty needed?

The irrigation system in the Indus basin had been built as an integrated network. When India and Pakistan became separate countries, the new international boundary cut across that system, leaving canals and infrastructure in one country dependent on water originating or passing through the other.

In 1948, India temporarily withheld water from canals flowing into Pakistan, triggering an international dispute.

Years of negotiations followed. Negotiations continued for almost a decade before India and Pakistan signed the Indus Waters Treaty in Karachi in 1960.

The agreement was signed by Prime Minister Jawaharlal Nehru and Pakistan's then President Ayub Khan, with the World Bank also signing the treaty.

Why is the Indus important to Pakistan?

Pakistan's dependence on the Indus system is particularly high.

The basin supports most of the country's agricultural heartland, with the rivers supplying water for crops including wheat, rice and cotton. Agriculture accounts for a significant share of Pakistan's economy, employment and exports.

Also Read: Attempt to deprive Pak of its share of Indus water will have 'profound consequences': Dy PM Dar

Much of the country's population also lives within the basin, while the system supports its irrigation and hydropower.

Pakistan has therefore consistently argued that India's construction and operation of hydropower projects on the Western Rivers must remain within the restrictions set by the treaty.

"Pakistan is currently a non-permanent member of the United Nations Security Council and will most likely raise this issue in the hopes of securing a resolution against India," added Dr. Hussain.

How important is the Indus to India?

Punjab, whose name literally means "land of five waters", relies heavily on the river system for agriculture. Rajasthan, Haryana and parts of northern India also face significant water stress.

Population growth, urbanisation, agricultural demand and climate change are expected to increase pressure on water supplies.

That has strengthened India's argument that the treaty, negotiated more than six decades ago, needs to account for circumstances that have changed considerably.

Why has India been unhappy with the treaty?

India's objections have centred on both the treaty's provisions and the way disputes over hydropower projects are handled.

Under the treaty, India can develop hydropower projects on the Western Rivers, but those projects have to comply with detailed technical restrictions governing matters such as storage and the design and operation of dams.

Pakistan has challenged several Indian projects, arguing that their designs could give India control over the timing and volume of water reaching Pakistan.

Two of the most prominent disputes concern the Kishanganga and Ratle hydropower projects.

India has argued that the process being used to adjudicate the disputes is not appropriate and has sought changes to the treaty.

In 2023, India formally asked Pakistan to enter negotiations to modify the treaty, citing demographic, economic and environmental changes as well as developments in technology.

What happened after the Pahalgam attack?

Following the Pahalgam attack, India announced that it was putting the treaty in abeyance, along with a series of other measures.

The decision was one of the most significant breaks in the treaty's history. It had continued to operate through the two countries' wars and repeated periods of heightened tension.

In May 2025, the crisis escalated into several days of military fighting. India carried out strikes on targets in Pakistan. The ceasefire later did not restore the water treaty. India maintained its position.

What has happened post suspension of the treaty?

Suspending the treaty does not mean India has the ability to simply switch off the Indus system's flow into Pakistan.

India currently lacks the massive network of reservoirs, dams and canals that would be required to completely block or divert the flow of the Western Rivers.

What has changed is the framework governing cooperation and India's room to pursue projects upstream.

Building major water infrastructure takes years. India's existing projects on the Western Rivers have themselves taken considerable time and investment to develop.

What does India want?

India's position has increasingly focused on the need to use its share of the river system more fully and to revisit provisions it considers outdated.

The government has argued that the treaty was negotiated in a very different demographic, technological and environmental era.

From India's perspective, greater development of hydropower on the Western Rivers could help meet energy needs while, no longer being constrained by the treaty framework.

The government has maintained that the treaty cannot be considered in isolation from the broader security relationship with Pakistan.

What has the international arbitration process said?

Pakistan pursued arbitration over the Kishanganga and Ratle projects, while India sought the appointment of a Neutral Expert. The World Bank ultimately proceeded with both processes after years of attempts to find a mutually acceptable approach.

In August 2026, the Permanent Court of Arbitration in The Hague ruled that the Indus Waters Treaty remained in force and that India must observe its obligations under the agreement.

The court also said restrictions should apply to parts of construction at the Ratle project pending a Neutral Expert's assessment.

India rejected the ruling, saying the arbitration body had no jurisdiction, adding it would have no effect on sovereign decisions or its ongoing projects.

What happens next?

The Indus Waters Treaty is now caught between two very different realities.

For Pakistan, the treaty remains a crucial framework for securing predictable access to the river system.


For India, the treaty has increasingly become a framework it says needs to be reconsidered in light of changed security, demographic, technological and environmental circumstances.

At the same time, the physical realities of the basin have not changed. The rivers continue to cross borders, agriculture continues to depend on them and climate change is making water management more difficult.

That is what makes the treaty more than a water-sharing agreement. It is an instrument of water management, a product of the history of partition, a source of leverage in India-Pakistan relations and an increasingly important question of water security in a warming region.