'World Bank Has No Role In Indus Water Treaty': President Ajay Banga Amid India-Pakistan Tensions

World Bank President Ajay Banga has issued a clear clarification on the institution’s position following India’s recent suspension of the Indus Waters Treaty, which came in the aftermath of the terror attack in Pahalgam.

Amid growing speculation about the bank’s involvement, Banga emphasised that the World Bank does not serve as a decision-maker in disputes between India and Pakistan.

“We are not a judge or a decision-maker. The World Bank has no role in suspending or continuing the treaty,” Banga stated, stressing that the bank’s role under the treaty is strictly procedural and administrative.

He explained that the World Bank’s involvement is limited to assisting in the appointment of a Neutral Expert or in convening a Court of Arbitration—but only if both countries request it jointly. 

The bank also manages the trust fund that finances such processes. However, it holds no authority to suspend, continue, or enforce the treaty on its own.

Banga further clarified the limits of the treaty itself, pointing out that the Indus Waters Treaty, brokered by the World Bank in 1960, contains no clause that allows for its suspension. He noted that any alteration, suspension, or replacement of the agreement must result from mutual consent between India and Pakistan.

In response to Pakistan’s declaration that it would seek intervention from the World Bank, Banga stated that no formal communication had been received from either party so far.

Dismissing the idea that the bank could act independently to resolve the dispute, he added, “...the treaty is between two sovereign nations. It’s up to them to decide its future.” He also expressed concern about the public misunderstanding surrounding the bank’s role.

This clarification comes amid escalating tensions, with Pakistan supporting cross-border terrorism and India acting to suspend the treaty in protest. Pakistan has condemned the move as “unilateral and illegal,” warning against any effort to limit its access to water resources under the treaty.

The World Bank’s involvement during the Indus Water Treaty (1960) was a product of urgent post-partition water needs, failed bilateral negotiations, and the search for a trusted, neutral, and well-resourced third party capable of brokering.