Amid heightened tensions between India and Pakistan following the Pahalgam terror attack, World Bank President Ajay Banga has firmly clarified the institution’s limited role regarding the Indus Waters Treaty, stating it acts solely as a facilitator and will not intervene in the unfolding situation.
Addressing recent speculation, Banga emphasized that the World Bank has no mandate to mediate or resolve the current standoff, describing reports suggesting otherwise as “bunk.” Speaking to the Press Information Bureau, he said, “We have no role to play beyond being a facilitator. There’s a lot of speculation in the media about how the World Bank will step in and fix the problem, but it’s all bunk.”
The Indus Waters Treaty, brokered by the World Bank and signed in 1960 after nearly a decade of negotiations, governs the allocation of water from the Indus River system between the two neighbors. Under the terms, Pakistan receives rights to the Western rivers—Indus, Jhelum, and Chenab—while India controls the Eastern rivers—Ravi, Beas, and Sutlej—with limited access to the Western waters.
The latest friction surfaced after a devastating terrorist attack in Pahalgam, Jammu and Kashmir, resulted in 26 deaths, predominantly among tourists. In the immediate aftermath, India announced it would suspend its participation in the treaty until Pakistan “credibly and irrevocably” renounces support for cross-border terrorism.
Adding to the discourse, India’s Foreign Secretary Vikram Misri pointed to Pakistan’s repeated violations of the treaty, accusing Islamabad of creating deliberate “legal roadblocks” to obstruct India’s rightful use of the Indus waters. “It is India’s patience that we adhered to the treaty for 65 years,” Misri remarked during a press briefing. He highlighted that India had been seeking dialogue for over two years, sending multiple notices to Pakistan to negotiate possible modifications to the treaty—efforts that reportedly received no constructive response.
Misri also underscored India’s restraint, maintaining the treaty even during periods of active conflict with Pakistan. He noted that India’s current decision to suspend the treaty stems not only from the recent attack but also from a history of persistent provocations and non-cooperation.
The suspension of the Indus Waters Treaty marks a significant shift in the bilateral relationship, as the agreement has long been seen as a rare example of sustained cooperation between the two adversaries.
Meanwhile, Banga’s meeting with Prime Minister Narendra Modi on Thursday evening triggered rumors that the World Bank might mediate a resolution. However, the World Bank President’s categorical denial has now made it clear that the institution will not be playing a larger role.
As tensions simmer, the future of one of the world’s most successful water-sharing accords remains uncertain, casting a shadow over an already fragile peace.
