The World Bank Group on 13th Dec 2016 halted the two concurrent processes initiated by India and Pakistan under the Indus Water Treaty.
The bank initiated this move to protect the treaty.
World Bank President Jim Yong Kim informed the finance ministries of both countries to this effect.
India planned to construct the Kishenganga and Ratle hydroelectric power plants on Indus River System in J&K.
Pakistan raised objections against these projects claiming they would affect Pakistan by impacting the river flow adversely.
To resolve the differences between India and Pakistan, the two countries asked the World Bank to appoint a neutral expert and a court of arbitration respectively.
Bank in its earlier communication to both countries said that necessary processes will be put in place by Dec 12, 2016.
Bank withdrew this communication and made the announcement that the concurrent process would make the treaty unworkable over time.
These processes were therefore stopped.
Indus Water Treaty - Water distribution treaty between India and Pakistan.
- Brokered by the World Bank.
- Signed on: 19th Sept 1960.
- Signatories: PM Jawaharlal Nehru and President Ayub Khan.
- Control over three western flowing rivers Indus, Chenab and Jhelum vests with Pakistan.
- Three eastern rivers Ravi, Beas and Sutlej are controlled by India
- Treaty provides for dispute resolution mechanism at three levels:
a. Questions
b. Differences
c. Disputes- In Sept 2016, following the Pathankot and Uri attacks, PM Modi stopped the Permanent Indus Commission meeting.
