The Indus Waters Treaty (IWT) is a bilateral treaty, signed on September 19, 1960, between India and Pakistan, brokered by the World Bank (International Bank for Reconstruction and Development). The treaty was created to resolve disputes over the utilization of the six rivers of the Indus River system following the Partition of India in 1947, which left the headworks in India and the canals in Pakistan, leading to a conflict over water usage. The IWT solved this problem by fixing and delimiting the rights and obligations of both countries concerning the use of these waters.
The core mechanism of the treaty, detailed in Article II and Article III, is a water-sharing arrangement that divides the six rivers into two categories. The three "Eastern Rivers"—the Ravi, Beas, and Sutlej—were allocated for the exclusive use of India. The three "Western Rivers"—the Indus, Jhelum, and Chenab—were allocated for the unrestricted use of Pakistan. India is permitted limited, non-consumptive uses on the Western Rivers, such as run-of-the-river hydroelectric power generation and limited irrigation, subject to specific design and operational regulations detailed in the treaty's Annexures.
The treaty connects to the Permanent Indus Commission (PIC), established under Article VIII, which comprises a commissioner from each country and serves as a channel for communication and data exchange, mandated to meet at least once a year. The IWT also includes a three-tiered dispute resolution mechanism under Article IX: "Questions" are handled by the PIC, "Differences" are referred to a Neutral Expert, and "Disputes" are referred to an ad hoc arbitral tribunal called the Court of Arbitration.
The treaty has recently undergone significant change: in April 2025, India placed the treaty "in abeyance" following the Pahalgam attack, and in January 2023, India formally notified Pakistan of its desire to modify the treaty, citing demographic shifts and new climate realities. India's action was based on the belief that Pakistan's alleged support for cross-border terrorism constituted a material breach, allowing for suspension under principles like Article 60 of the Vienna Convention on the Law of Treaties, although the treaty itself contains no exit clause. Despite India's move, the Neutral Expert proceedings regarding the Kishenganga and Ratle hydroelectric power plants continued, highlighting the resilience of the treaty's institutional framework.