Indus Waters Treaty Will Not Function in Current Form Unless Pakistan Halts Terror: Govt Sources

The existing framework of the over-65-year-old Indus Waters Treaty will not operate again, government sources stated. Any future agreements regarding river allocations require Pakistan to permanently halt cross-border terrorism.

New Delhi placed the pact in abeyance following the Pahalgam terror attack in April 2025. The strike killed 26 civilians. The suspension formed part of a series of diplomatic and economic measures India announced against Pakistan after the attack. The government linked this assault to The Resistance Front, which operates as a proxy for Lashkar-e-Taiba. Following the attack, India launched Operation Sindoor in May 2025. This military action directly targeted terrorist infrastructure located across the border.

"It would be accurate to say that the Indus Waters Treaty in its present form will not function again. If provisions related to river water sharing have to be reactivated, they have to be done in a different form, not in the present form. And only if Pakistan abjures terrorism," a government source said as per news reports.

No Immediate Exit Plans

Government sources stated that New Delhi is not actively considering withdrawing from the water-sharing agreement at present. However, they emphasised that India retains the sovereign right to terminate any international agreement if the pact operates against national interests.

"It [exiting the IWT] depends on the actions that Pakistan takes going forward," a government source said.

The treaty's future depends entirely on Islamabad taking credible and irreversible steps to dismantle terror infrastructure. Future diplomatic engagements remain contingent upon verifiable reductions in militant activities.

Rejecting Pakistan's Water Narrative

India rejects claims from Islamabad that the treaty's abeyance caused domestic water shortages. Government sources attributed Pakistan's water scarcity to poor storage infrastructure, extensive leakages and ongoing provincial water-sharing disputes.

Islamabad is attempting to create a "false narrative" by blaming India for problems rooted in its domestic water management, government sources stated.

Government sources stated that active terror networks remain fully operational within Pakistan. Individuals and organisations designated by the United Nations Security Council 1267 Sanctions Committee continue to operate and propagate messages openly.

"On the contrary, we continue to receive reports that proscribed individuals and entities sanctioned by the UN Security Council’s 1267 sanctions committee continue to appear at public events in Pakistan, continue to be able to have platforms that they can use to propagate their messages," a government source said.

Indian intelligence agencies stated that terrorist activities just across the Line of Control remain highly active.

"The evidence that our agencies have in terms of their activities just across the Line of Control also suggests that there are no credible steps that have been taken so far to control terrorist activities," another source said.

History of Project Obstruction

India and Pakistan signed the Indus Waters Treaty on September 19, 1960. The World Bank brokered the agreement following nine years of negotiations. The pact allocated the eastern rivers—Ravi, Beas and Sutlej—to India. Pakistan received the western rivers, comprising the Indus, Jhelum and Chenab. The treaty also permits India to build run-of-river hydroelectric projects on the western rivers before they flow into Pakistan.

India accuses Pakistan of systematically using dispute-resolution mechanisms to delay legitimate Indian hydroelectric projects. New Delhi stated that Pakistan raised objections against numerous facilities, including Salal, Tulbul, Baglihar, Kishenganga, Ratle and Pakal Dul. Pakistan even challenged a minor 200-kilowatt project designed to supply electricity for a remote tribal region.

Pakistan escalated disputes over the Kishenganga and Ratle projects by shifting requests. Islamabad initially sought the appointment of a Neutral Expert in 2015. It subsequently demanded a Court of Arbitration in 2016. This procedural shift led the World Bank to initiate parallel proceedings. India participated in proceedings before the Neutral Expert but eventually boycotted the Court of Arbitration, citing the treaty's graded dispute-resolution mechanism.