India-Pakistan Indus Waters Treaty Dispute
Analysis based on 7 articles · First reported Jun 23, 2025 · Last updated Jun 24, 2025
The dispute over the Indus Waters Treaty between India and Pakistan, including threats of war and military actions, significantly increases geopolitical risk in South Asia. This could lead to instability, impacting regional trade, investment, and potentially causing a flight to safety in global markets.
India unilaterally suspended the Indus Waters Treaty (IWT) following the April 22 Pahalgam terror attack, which killed 26 people. Union Home Minister Amit Shah declared that India would never restore the 1960 water-sharing agreement, stating India would divert water previously flowing to Pakistan. In response, Pakistan's former Foreign Minister and Pakistan — Pakistan People s Party chairman, Bilawal Bhutto Zardari, issued strong warnings, threatening war if India denies Pakistan its share of water. He called India's move illegal under the UN Charter and accused India of 'weaponizing terrorism for political purposes' and attempting to push Pakistan back onto the Financial Action Task Force grey list. India also launched 'Operation Sindoor' on May 7, targeting terrorist infrastructure in Pakistan-controlled territories, which led to four days of clashes.
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