World Bank Backs India on India-Pak Dispute on Indus Water Treaty

A neutral expert appointed by the World Bank has backed India’s stance on resolving the disputes with Pakistan over the Kishenganga and Ratle hydroelectric projects. The decision reinforces India’s position that these issues should be handled through the Indus Waters Treaty (IWT) dispute resolution process, rather than through arbitration.

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India Welcomes the Decision

India has long advocated for using the Neutral Expert mechanism, as outlined in the IWT, to resolve technical concerns related to the hydroelectric projects. On January 20, 2025, the Neutral Expert affirmed its competence to address these issues, a decision that India welcomed.

The Ministry of External Affairs (MEA) stated, “India welcomes the decision given by the Neutral Expert under Paragraph 7 of Annexure F to the Indus Waters Treaty, 1960. The decision upholds and vindicates India’s stand that all seven questions referred to the Neutral Expert fall within his competence under the Treaty.”

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India’s Commitment to Treaty Integrity

India remains firm in its belief that only the Neutral Expert has the authority to resolve these disputes, emphasizing that the IWT prohibits parallel proceedings or arbitration for the same issues. The MEA reiterated that India does not recognize or participate in the Permanent Court of Arbitration (PCA), which Pakistan has sought to involve in the dispute.

Background of The Dispute

The dispute centers around India’s Kishenganga and Ratle hydroelectric projects, located on the Kishenganga (a tributary of the Jhelum River) and the Chenab River. In 2015, Pakistan requested a Neutral Expert to review its objections, but later, in 2016, withdrew this request and proposed arbitration instead. India maintains that this action contradicts the dispute resolution process outlined in Article IX of the IWT.

In August 2024, India issued a notice to Pakistan seeking a review of the IWT under Article XII (3), and in January 2023, sought modifications to the Treaty.

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Further Proceedings

With the Neutral Expert’s decision, the dispute moves to the next phase, where the technical differences raised by Pakistan will be evaluated. India will continue participating in this phase, aiming for a resolution in line with the IWT.

Conclusion

The Neutral Expert’s recent decision to support India’s legal position is a significant development in the ongoing dispute between India and Pakistan over the Kishenganga and Ratle hydroelectric projects. It reinforces India’s belief that the Indus Waters Treaty provides the appropriate mechanism for addressing technical issues related to water use and hydroelectric projects. As the process moves forward, India remains committed to preserving the Treaty’s integrity and ensuring that the dispute is resolved in accordance with its provisions, without resorting to parallel arbitration proceedings.

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