Ajay Banga Clarifies World Bank Role in Indus Water Treaty Row
The World Bank's role in the Indus Water Treaty is focused on facilitating dispute resolution, with no intention to intervene or arbitrate in the dispute between India and Pakistan. The treaty's fate remains a critical issue for Pakistan, which relies heavily on the Indus river system for its water supply, and India, which has asserted its right to suspend the treaty.
World Bank President Ajay Banga met with Indian Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman to discuss the Indus Water Treaty, emphasizing that the World Bank's role is limited to facilitating dispute resolution through neutral experts or arbitrators.
The Indus Water Treaty has been a point of contention between India and Pakistan, with India suspending the treaty in April amid rising tensions. Banga stressed that the treaty is a sovereign decision between two countries, and the World Bank's role is only administrative and financial, including setting up a trust fund to pay the fees of arbitrators.
Banga rejected media speculation that the World Bank has a role to play in the dispute, saying it's "bunk" and that the treaty is between two sovereign nations. He emphasized that the treaty, as originally drafted, does not contain a provision for suspension, and any change requires the two countries to agree. The World Bank's role is limited to facilitating a neutral expert or arbitrator to settle disputes, and it has no role to play beyond that.
The treaty is critical for Pakistan as it supplies 80% of its water from the Indus, Ravi, and Jhelum rivers. India has asserted its right to suspend the treaty, citing changes in circumstances since its signing. The World Bank had previously intervened in the 1960s to help India and Pakistan resolve their dispute over the Indus river system, but Banga's visit to India has sparked speculation that his organization may be poised to play a similar role.
The clarification by Ajay Banga on the World Bank's role in the Indus Water Treaty row is expected to reduce speculation and allow the two countries to find a resolution through diplomatic channels. The World Bank's limited role in facilitating dispute resolution is likely to be seen as a positive step towards finding a peaceful resolution to the dispute.