Accept India’s ‘neutral expert’ offer: WB to Pakistan

The World Bank has asked Pakistan to withdraw from its stand of referring the Kishanganga dam dispute to the International Court of Arbitration (ICA) and instead accept India’s offer of appointing a ‘neutral expert’ to resolve the issue, according to persons aware of the development.

World Bank president Jim Yong Kim’s advice to the Pakistani government came last week.

Last month, Prime Minister Narendra Modi had inaugurated the 330 MW Kishanganga hydroelectric project in Jammu & Kashmir. Pakistan had protested the move saying that the project on a river flowing into Pakistan will disrupt water supply. It even warned India of dire consequences.


At Islamabad’s behest after the project was inaugurated, World Bank executives had held several meetings with Pakistani authorities to discuss what the latter said were issues regarding the Indus Waters Treaty and opportunities within the treaty to seek an amicable resolution. Later, in a statement, the World Bank had said that "several procedural options" for resolving the disagreement over the interpretation of the treaty's provisions had been deliberated.

"While an agreement on the way forward was not reached at the conclusion of the meetings, the World Bank will continue to work with both countries to resolve the issues in an amicable manner and in line with the treaty provisions," the Bank’s statement said.

Pakistan considers the India-built Kishanganga dam as a violation of the Indus Waters Treaty of 1960. India denies any violation and says it is only an issue over the dam’s design. It, therefore, wants it to be addressed by neutral experts.

In December 2016, the World Bank president had informed the then Pakistan finance minister Ishaq Dar that he had decided to “pause” the process of appointing the ICA chairman as well as the neutral expert.

Persons familiar with the matter said the World Bank had not taken into consideration the satellite images provided by Pakistan and refused to stay the construction of the dam.

The 1960 treaty recognises the World Bank as an arbitrator in water disputes between India and Pakistan, as the bank had played a key role in concluding this agreement. The pact allows India to have control over the water flowing into three eastern rivers — Beas, Ravi and Sutlej — and also permits it to use the water of western rivers — Chenab, Jhelum and Indus. India, however, cannot divert water from these rivers.

The treaty allows India to construct “run-of-the-river” hydel projects, like the $864-million Kishanganga Hydroelectric Plant.