India suspends the Indus Treaty after the Pahalgam terror attack. Here’s how it could impact Pakistan’s water access, power supply, and economy.

On April 22, 2025, a deadly attack shook Pahalgam, a popular tourist town in Jammu and Kashmir. Militants opened fire on tourists, killing 28 and injuring many more. The group behind the attack is believed to be linked to Pakistan-based militants. In a strong response, India has suspended the Indus Waters Treaty (IWT)—a critical water-sharing agreement with Pakistan. This bold decision could reshape the future of both countries’ relationship and deeply affect Pakistan’s water security.
🌍 Pahalgam Attack: What Happened and Why It Matters
The brutal attack took place in the Baisaran Valley, where gunmen targeted tourists on a sightseeing trail. Authorities identified the attackers as members of The Resistance Front (TRF), a group reportedly backed by Lashkar-e-Taiba in Pakistan.
This is one of the worst attacks in Kashmir since the 2019 Pulwama bombing. India has accused Pakistan of harboring terrorists and enabling such cross-border violence—sparking renewed diplomatic and security tensions.
🌊 What Is the Indus Treaty and Why Is It Important?
The Indus Treaty, signed in 1960 with the help of the World Bank, allows Pakistan to use most of the water from the Indus River system. Despite wars and conflicts, the treaty had survived for over six decades.
But now, India has suspended the agreement. Here’s what that includes:
- 🔒 Closing the Wagah-Attari border crossing
- 🛂 Cancelling visa exemptions for Pakistani citizens
- 🛑 Stopping water data sharing and technical exchanges
⚠️ How India’s Decision Could Hurt Pakistan
Pakistan heavily depends on the Indus River for its farming, drinking water, and electricity. With the Indus Treaty on hold, here’s what Pakistan might face:
- 🧺 Food Shortage Risk: Crops in Punjab and Sindh depend on Indus water. Less water means smaller harvests and rising food prices.
- 💡 Power Crisis: Around 30% of Pakistan’s energy comes from hydro projects on the Indus. A cut in the water supply could cause blackouts.
- 💸 Economic Slowdown: Agriculture, energy, and industry—all key parts of Pakistan’s economy—may suffer due to reduced water flow.
🌐 How the World Is Reacting
This sudden move has triggered concerns across global diplomatic circles:
- 🇺🇸 United States: Condemned the attack and urged both nations to show restraint.
- 🇺🇳 United Nations: Called for peaceful dialogue and respect for international treaties.
- 🌎 World Bank: As a treaty guarantor, it has not made an official comment but may step in to mediate.
🕰️ A Look Back: The Treaty That Defied War
The IWT is often called one of the most successful water-sharing agreements in the world. It stayed intact through:
- The 1965 and 1971 India-Pakistan wars
- The 1999 Kargil conflict
- Numerous terror attacks and border tensions
But the current suspension is a rare and dramatic escalation.
📊 By the Numbers: Indus Treaty in Pakistan
- Population relying on Indus Basin: Over 200 million
- Water contribution to GDP: ~25%
- Hydropower share in electricity: ~30%
- Farmland irrigated by Indus: ~90%
The numbers show why the Indus Treaty matters so much to Pakistan’s daily life and future.
❓ FAQs: What People Are Asking
Q1. What is the Indus Treaty?
It’s a 1960 agreement between India and Pakistan, allowing Pakistan control over the Indus and its tributaries, brokered by the World Bank.
Q2. Why did India suspend the Indus Treaty now?
After the Pahalgam attack, India blamed Pakistan-supported militants and decided to send a strong diplomatic message by halting cooperation on water sharing.
Q3. Can this decision be reversed?
Possibly. If tensions reduce and diplomacy resumes, the treaty could be reactivated. But trust between the nations will need rebuilding.
Q4. How badly could this hit Pakistan?
From crop failures to energy shortages, the suspension could lead to major economic and humanitarian stress in Pakistan.
Q5. What’s next for India-Pakistan relations?
It depends on how both sides handle the situation. Dialogue or escalation—either path is possible right now.
http://World Bank on Indus Waters Treaty
📢 Call to Action
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