The Indus water treaty is a water distribution treaty between Pakistan and India, brokered by the World Bank. The treaty was signed in September 19, 1960, by the then Prime Minister of India Jawaharlal Nehru and president of Pakistan Ayub khan.
Major of the treaty
India Control: Beas, the Ravi and the Sutlej
Pakistan Control: Indus, the Chenab and the Jhelum
Pakistan's rivers flow through India first, the treaty allowed India to use them for irrigation, transport and power generation, while laying down precise regulations for Indian building projects along the way.
As per the provisions in the treaty, India can use only 20% of the total water carried by the Indus river.
The Indus system of rivers comprises three western rivers the Indus, the Jhelum and Chenab and three eastern rivers the Sutlej, the Beas and the Ravi. The treaty, under Article 5.1, envisages the sharing of waters of the rivers Ravi, Beas, Sutlej, Jhelum and Chenab which join the Indus River on its left bank (eastern side) in Pakistan. According to this treaty, Ravi, Beas and Sutlej, which constitute the eastern rivers, are allocated for exclusive use by India before they enter Pakistan. However, a transition period of 10 years was permitted in which India was bound to supply water to Pakistan from these rivers until Pakistan was able to build the canal system for utilization of waters of Jhelum, Chenab and the Indus itself, allocated to it under the treaty. Similarly, Pakistan has exclusive use of the western rivers Jhelum, Chenab and Indus. Pakistan also received one-time financial compensation for the loss of water from the eastern rivers. Since March 31, 1970, after the 10-year moratorium, India has secured full rights for use of the waters of the three rivers allocated to it. The treaty resulted in partitioning of the rivers rather than sharing of their waters.
The countries agree to exchange data and co-operate in matters related to the treaty. For this purpose, treaty creates the Permanent Indus Commission, with a commissioner appointed by each country.
World Bank involvement
India and Pakistan were on the verge of war over Kashmir. There seemed to be no possibility of negotiating this issue until tensions abated. One way to reduce hostility . . . would be to concentrate on other important issues where cooperation was possible. Progress in these areas would promote a sense of community between the two nations which might, in time, lead to a Kashmir settlement. Accordingly, I proposed that India and Pakistan work out a program jointly to develop and jointly to operate the Indus Basin river system, upon which both nations were dependent for irrigation water. With new dams and irrigation canals, the Indus and its tributaries could be made to yield the additional water each country needed for increased food production. In the article I had suggested that the World Bank might use its good offices to bring the parties to agreement, and help in the financing of an Indus Development program. This were the words of Lilienthal's whose idea was well received by officials at the World Bank, and, subsequently, by the Indian and Pakistani governments.
Eugene R. Black, then president of the World Bank, told Lilienthal that his proposal "makes good sense all round", Black proposed a Working Party made up of Indian, Pakistani and World Bank engineers. The World Bank delegation would act as a consultative group, charged with offering suggestions and speeding dialogue.
While the Indian side was amenable to the World Bank proposal, Pakistan found it unacceptable. The World Bank allocated the eastern rivers to India and the western rivers to Pakistan. This new distribution did not account for the historical usage of the Indus basin, or the fact that West Punjab's Eastern districts could turn into desert, and repudiated Pakistan's negotiating position. Where India had stood for a new system of allocation, Pakistan felt that its share of waters should be based on pre-partition distribution. The World Bank proposal was more in line with the Indian plan and this angered the Pakistani delegation. They threatened to withdraw from the Working Party, and negotiations verged on collapse.
However, neither side could afford the dissolution of talks. The Pakistani press met rumors of an end to negotiation with talk of increased hostilities; the government was ill-prepared to forego talks for a violent conflict with India and was forced to reconsider its position. India was also eager to settle the Indus issue; large development projects were put on hold by negotiations, and Indian leaders were eager to divert water for irrigation.
In December 1954, the two sides returned to the negotiating table. The World Bank proposal was transformed from a basis of settlement to a basis for negotiation and the talks continued, stop and go, for the next six years.
One of the last stumbling blocks to an agreement concerned financing for the construction of canals and storage facilities that would transfer water from the western rivers to Pakistan. This transfer was necessary to make up for the water Pakistan was giving up by ceding its rights to the eastern rivers. The World Bank initially planned for India to pay for these works, but India refused. The Bank responded with a plan for external financing supplied mainly by the United States and the United Kingdom. This solution cleared the remaining stumbling blocks to agreement, and the Treaty was signed by the leaders of both countries in 1960.
The agreement set up the Permanent Indus Commission to adjudicate any future disputes arising over the allocation of waters. The Commission has survived three wars and provides an ongoing mechanism for consultation and conflict resolution through inspection, exchange of data and visits. The Commission is required to meet regularly to discuss potential disputes as well as cooperative arrangements for the development of the basin. Either party must notify the other of plans to construct any engineering works which would affect the other party and to provide data about such works. In cases of disagreement, a neutral expert is called in for mediation and arbitration. While neither side has initiated projects that could cause the kind of conflict that the Commission was created to resolve, the annual inspections and exchange of data continue, unperturbed by tensions on the subcontinent.
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