However, on April 23, the government took a momentous step and decided to place the Indus Waters Treaty (IWT) in abeyance. It said that “sustained cross-border terrorism by Pakistan” has targeted Jammu and Kashmir and the uncertainty caused by terror attacks has impeded India’s full utilisation of its rights under the treaty.

⁠Meanwhile, Pakistani Prime Minister Shehbaz Sharif’s office has said that that stopping or diverting the flow of water in violation of the treaty would be “an Act of War”.

The diplomatic fallout between the two nations has brought a 65-year-old treaty to limelight. Here is a summary of what the treaty is and what makes it so important.

What is the Indus Waters Treaty?

The IWT is a World Bank-brokered water-sharing agreement between India and Pakistan. It was signed in 1960 by the then Indian Prime Minister Jawaharlal Nehru, Pakistani President General Ayub Khan and Sir William Iliff of the World Bank.

The agreement governs how the waters of the six rivers under the Indus River system – Indus, Jhelum, Chenab, Ravi, Beas and Sutlej – are to be shared between the two countries. It gives India 20% of the water and the rest 80% to Pakistan.

While India has exclusive rights to the waters of the three eastern rivers, Ravi, Beas, and Sutlej, Pakistan is entitled to the waters of the western rivers, Indus, Jhelum, and Chenab. However, under certain conditions, India can use these western rivers for “non-consumptive” purposes like irrigation, hydropower, and navigation.

The treaty has 12 articles and eight annexures.

How crucial is the treaty for Pakistan?

The IWT is essential for Pakistan because almost 80% of its cultivated land is dependent on the waters from the Indus River system. Agriculture makes up a quarter of Pakistan’s economy, employs half of its labour force and is the largest source of foreign exchange earnings.

Moreover, major cities like Lahore, Karachi and Multan also rely on the water from the Indus system, and the survival of the country’s several hydropower projects also depends on these rivers.

In fact in 1961, Iliff, the then Vice President of the World Bank, had said that if Pakistan is deprived of its canal water from the Indus system, the whole country would become a desert.

How soon can India turn the tap shut on the Indus water?

Stopping the flow of the three rivers, Indus, Jhelum and Chenab requires significant infrastructure which India does not have yet. Building dams and reservoirs will take years.