Explainer: What is the Indus Waters Treaty and why it matters

More than six decades after it was signed, the Indus Waters Treaty is back in the spotlight. The landmark agreement, which governs the sharing of river waters between India and Pakistan, is at the centre of fresh debates over water security, infrastructure projects, and regional diplomacy.

Pakistan’s Deputy Prime Minister Ishaq Dar on Friday accused India of “consistently attempting to undermine the treaty, claiming the current material breaches strike at the heart of the pact”. He also warned that any disruption would be considered as “an act of war”.

What is Indus Waters Treaty

The Indus Waters Treaty is a water-sharing agreement, governing how the two neighbours — India and Pakistan — use the waters of the Indus River system. Signed in 1960 with mediation by the World Bank, the treaty has survived wars, diplomatic breakdowns and political hostility.

History

The roots of the treaty lie in the 1947 Partition. The headworks of most of the rivers that flow through the Indus basin are located in India, while the majority of the agricultural production and the population who rely on that water for their livelihoods are located in Pakistan.

Early disruptions to water supplies fuelled tensions and the World Bank had to step in during the 1950s to mediate negotiations after bilateral talks failed to resolve the issue. After nearly a decade of discussions, Indian prime minister Jawaharlal Nehru and Pakistani president Ayub Khan signed the Indus Waters Treaty in 1960.

Key provisions of the treaty

At the heart of the treaty is a clear division of water rights of the Indus basin. It allocates six rivers of the Indus system. Three of the rivers — Ravi, Beas and Sutlej — were exclusively reserved for India and the remaining three — Indus, Jhelum and Chenab — were allocated to Pakistan.

Signed in 1960, the Indus Waters Treaty established Permanent Indus Commission, with one commissioner from each country responsible for exchanging data and settling day‑to‑day disputes.

The treaty has major significance for both countries as Pakistan’s agriculture and water security depend heavily on the waters of the Indus basin, while India relies on the eastern rivers for irrigation and economic development in northern states. The treaty permits India to use the western rivers for non-consumptive purposes, such as the production of hydroelectric power, subject to specific restrictions.

Strategically, the treaty has long been seen as a stabilising mechanism in an otherwise volatile Indo-Pak relationship.

Recent developments

However, recent developments have put the agreement under strain. Following India’s Operation Sindoor, Pakistan reiterated its position that the treaty remains legally binding and cannot be altered or suspended unilaterally.

In April 2025, India announced that it would place the Indus Waters Treaty “in abeyance”. This meant that India would temporarily pause its obligations under the treaty, rather than formally terminate it, and reconsider cooperation. India’s strong response was met by sharp criticism from the Pakistan side, terming it “water warfare”.

Recently, Pakistani authorities once again alleged that India is “weaponising” shared waters. The potential impact of any interruption would be tantamount to "an act of war", they warned.

India has maintained that cooperation cannot be separated from wider security issues — especially ongoing cross‑border terrorism. The country has signalled that it will adopt a firm approach on the implementation of the treaty, signalling a clear departure from traditional diplomacy.

For India, Pakistan’s current position increases diplomatic and legal pressure on both the national and international stage. It also raises the risk that water issues could become further entwined with security concerns. Although India continues to uphold its rights under the treaty, a prolonged standoff risks complicating regional stability and long-term development planning.