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The Future of The Indus Waters Treaty: Outdated Peace Tool Or Strategic Asset?

The Business Guardian

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May 06, 2025

In the aftermath of the recent Pahalgam terrorist attack, which tragically claimed the lives of several Indian security personnel and reignited a wave of national outrage, attention has once again shifted to a strategic tool often overlooked in the broader India-Pakistan conflict narrative—the Indus Waters Treaty (IWT).

- DR. RUBINA KHAN AND SHIVANSHU KATARE

The Future of The Indus Waters Treaty: Outdated Peace Tool Or Strategic Asset?

Signed in 1960 under the auspices of the World Bank, this landmark water-sharing agreement between the two neighbours has remarkably endured through decades of war, diplomatic standoffs, and cross-border hostilities.

Yet, in the face of shifting geopolitics, recurring terror incidents, and rising calls for strategic recalibration, a pressing question re-emerges: Is the Indus Waters Treaty an outdated relic of Cold War-era diplomacy, or can it be repurposed as a powerful instrument of modern statecraft?

A TREATY FROM A DIFFERENT TIME When the IWT was signed, water was largely viewed through a humanitarian lens, distinct from the strategic considerations that dominate today's security discussions.

The treaty allocated exclusive use of the three eastern rivers—Beas, Ravi, and Sutlej—to India, while granting Pakistan rights over the western rivers—Indus, Jhelum, and Chenab.

Despite multiple wars and enduring hostility, the treaty has survived, often hailed as a rare testament to resilience amidst conflict.

However, in today's climate, where terrorism continues to spill across borders, the premise of unconditional water-sharing is being increasingly challenged.

The Pahalgam attack has reignited debate within India over the treaty's contemporary validity and strategic utility.

CLIMATE CHANGE AND STRATEGIC REALIGNMENT Climate change has dramatically altered the environmental landscape in which the IWT operates.

Melting glaciers, unpredictable monsoons, and frequent droughts have intensified the competition for water resources in the subcontinent.

Pakistan, in particular, is one of the most water-stressed countries in the world, according to World Bank and IMF assessments.

Given these realities, many Indian analysts and policymakers argue that water must now be viewed not just as a cooperative asset, but as a strategic lever.

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