Following the deadly terrorist attack in Pahalgam, Jammu and Kashmir, on April 22, 2025, which resulted in the deaths of 26 people, including a foreign national, the Indian government announced the suspension of the Indus Waters Treaty (IWT) of 1960 with Pakistan.

The Indian Embassy in Washington, DC, emphasised that the treaty was originally signed in a spirit of goodwill and friendship, but asserted that Pakistan’s persistent support for state-sponsored terrorism has "corroded this spirit." The Embassy stated, “India cannot be expected to continue to cooperate with a country which is responsible for killing innocent civilians”.

The Indus Waters Treaty, brokered by the World Bank and signed in 1960 after nine years of negotiations, is widely regarded as one of the most successful and enduring international water-sharing agreements.

It allocates the eastern rivers (Ravi, Beas, Sutlej) to India and the western rivers (Indus, Jhelum, Chenab) to Pakistan, while permitting each country certain uses of rivers allocated to the other. Under the treaty, India receives about 20% of the Indus River System’s water, while Pakistan receives 80%. The treaty has survived wars and periods of severe diplomatic tension, providing a framework for irrigation, hydropower, and flood management for over six decades.

India’s decision to suspend the treaty was taken after the Cabinet Committee on Security (CCS) found cross-border linkages to the Pahalgam attack. The Ministry of External Affairs announced that the IWT would be held in abeyance “with immediate effect, until Pakistan credibly and irreversibly abjures its support for cross-border terrorism”. This move is intended as a strong diplomatic measure to pressure Pakistan to cease its support for terrorism directed against India.

The suspension has significant implications for both countries. For India, it provides greater autonomy over water management in the Indus basin, potentially allowing for enhanced storage, flood control, and the ability to undertake projects without Pakistani approval.

For Pakistan, which is heavily dependent on the Indus River system for agriculture, drinking water, and power generation, the suspension threatens to exacerbate existing water scarcity, impact food security, and strain its rural economy. Nearly 70% of Pakistan’s economy relies on the Indus basin, making the treaty’s suspension a severe blow.

India’s suspension of the Indus Waters Treaty marks a dramatic shift in bilateral relations, directly linking water cooperation to the issue of cross-border terrorism. The Indian Embassy in the US has made it clear that the original spirit of goodwill underpinning the treaty has been undermined by Pakistan’s actions, and future cooperation is contingent on a verifiable end to Pakistan’s support for terrorism.

ANI