Indus Waters Treaty, 1960

The Indus Waters Treaty, 1960 is a water-sharing agreement between India and Pakistan concerning the Indus river system. It primarily allocates the eastern rivers to India and the western rivers to Pakistan, while permitting specified uses by the other side. It also establishes the Permanent Indus Commission and a graded process for resolving disagreements.

Allocation and permitted uses

• The Eastern Rivers, Ravi, Beas and Sutlej, are available for India’s unrestricted use, subject to limited transitional and specified provisions.
• India must let the Western Rivers, Indus, Jhelum and Chenab, flow for Pakistan’s unrestricted use, except for uses expressly permitted to India.
• India may undertake domestic and non-consumptive uses, limited agricultural use under Annexure C, hydroelectric projects meeting Annexure D conditions, and storage within Annexure E limits on the Western Rivers.

Permanent Indus Commission

Under Article VIII, each country appoints a Commissioner, and the two Commissioners constitute the Permanent Indus Commission. It facilitates cooperation, exchanges information, undertakes inspections and first examines questions concerning the Treaty’s interpretation, application or possible breach.

Graded dispute-resolution mechanism

Under Article IX, disagreements move through distinct stages rather than directly to arbitration.

• A question must first be examined by the Permanent Indus Commission, which seeks resolution by agreement.
• If unresolved, a technical difference falling within the matters listed in Annexure F may, at either Commissioner’s request, be referred to a Neutral Expert.
• The Neutral Expert’s decision is final and binding for the particular matter, but the Expert may determine that an issue should instead be treated as a dispute.
• A dispute, including a matter outside the Neutral Expert’s competence, may be addressed through intergovernmental negotiations, including mediation, and ultimately by a seven-member Court of Arbitration under Annexure G.
• The World Bank has limited procedural functions, particularly in specified appointment processes; it does not decide the substantive merits of a difference or dispute.