What is the Indus Water Treaty?

About Indus Water Treaty (IWT):

• It is a treaty signed between India and Pakistan regulating the use and distribution of the Indus River system.
• It was signed by then-Prime Minister Jawaharlal Nehru and former Pakistan President Ayub Khan in 1960.
• The treaty was brokered by the World Bank, which too is a signatory to the treaty.
• The pact sought to divide the water of the Indus River and its tributaries (Sutlej, Beas, Ravi, Jhelum, and Chenab) equitably among the two countries.
• Under the treaty, water from three eastern rivers, Beas, Ravi, and Sutlej, was allocated to India, and water from the three western rivers – Chenab, Indus, and Jhelum were allocated to Pakistan.
  • Pakistan roughly got 80% of the water in the Indus drainage system.
• The treaty also permits both countries to use the other’s rivers for certain purposes, such as small hydroelectric projects that require little or no water storage.
• The treaty is overseen by the Permanent Indus Commission (PIC), a bilateral body with commissioners from both countries tasked with implementing and managing treaty provisions, and resolving any questions, differences, or disputes that may arise.

The World Bank’s role is to appoint a neutral expert in case of ‘technical’ differences, failing which the differences are escalated to a dispute for international arbitration.

Q1: What is the World Bank (WB)?

The World Bank(WB) is an international financial institution that provides loans and grants to the governments of low and middle-income/developing countries for the purpose of pursuing capital projects. It was established along with the IMF at the 1944 Bretton Woods Conference. The WB is the collective name for the International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA), two of five international organisations owned by the WB Group.

Source: Pakistani delegation arrives in Jammu for Indus water treaty talks