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History of the Indus Waters Treaty Between India and Pakistan
The Business Guardian
|April 25, 2025
The Indus Waters Treaty (IWT) is a landmark agreement between India and Pakistan, brokered by the World Bank, to manage the allocation and use of water from the Indus River system.
This treaty has played a crucial role in maintaining peace and cooperation between the two nations, which have a complex and often strained relationship.
The Indus River system is one of the world's largest river basins, originating in the Tibetan Plateau and flowing through India and Pakistan before draining into the Arabian Sea. The basin includes the main Indus River and its major tributaries: Eastern Rivers: Beas, Ravi, and Sutlej (primarily allocated to India) Western Rivers: Indus, Chenab, and Jhelum (primarily allocated to Pakistan)
The partition of British India in 1947 created independent India and Pakistan, and this division disrupted the natural flow of the Indus River system. The boundary line placed the headwaters of the rivers in India, while the irrigation canals and large tracts of fertile land dependent on this water were located in Pakistan.
In the initial years following partition, the distribution of water became a major source of conflict between the two newly formed nations. In 1948, India briefly stopped the flow of water to canals in Pakistan, causing significant disruption and sparking fears of a "water war." This event highlighted the urgent need for a permanent agreement to manage this vital resource.
Recognizing the potential for escalating tensions, the World Bank stepped in to mediate and facilitate negotiations between India and Pakistan. In 1951, David Lilienthal, former head of the Tennessee Valley Authority (TVA), proposed that the Indus basin waters be managed by a joint commission. This proposal laid the groundwork for the World Bank's involvement.
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