Pakistan says open to water talks with India but insists Indus treaty remains binding

A view of the Neelum–Jhelum Hydropower Project in Neelum Valley in Azad Kashmir, Pakistan on May 8, 2025. (REUTERS)
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Updated 22 May 2025
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Pakistan says open to water talks with India but insists Indus treaty remains binding

  • Pakistan’s attorney general says India recently wrote to propose changes to the Indus Waters Treaty
  • He says Islamabad considers the treaty fully operational as Modi threatens to block water flows

ISLAMABAD: Pakistan is willing to discuss water-sharing concerns with India, the country’s top legal official said on Thursday, though he maintained the decades-old Indus Waters Treaty remained legally binding on both countries and could not be unilaterally suspended.

Attorney General Mansoor Usman Awan shared his country’s perspective with Reuters over the issue in an exclusive interview after Indian Prime Minister Narendra Modi’s reiterated his threat to block water flows to Pakistan.

India has said it would suspend the treaty as part of a series of measures following a deadly militant attack in Indian-administered Kashmir on April 22, which New Delhi blamed on Islamabad. Pakistan denies the allegation and says any attempt to disrupt water access would be a breach of international obligations with severe consequences.

“Pakistan is willing to talk about or to address anything, any concerns they [the Indians] may have,” Awan said during the interview.

He said India had written to Pakistan in recent weeks, citing population growth and clean energy needs as reasons to modify the treaty. But he said any discussions would have to take part under the terms of the treaty.

Islamabad maintains the treaty is legally binding and no party can unilaterally suspend it, Awan said.

“As far as Pakistan is concerned, the treaty is very much operational, functional, and anything which India does, it does at its own cost and peril as far as the building of any hydroelectric power projects are concerned,” he added.

Modi on Thursday ramped up pressure during a public event in Rajasthan, a state bordering Pakistan, saying: “Pakistan will not get water from rivers over which India has rights.”

“Pakistan will have to pay a heavy price for every terrorist attack … Pakistan’s army will pay it. Pakistan’s economy will pay it,” he added, referencing the April 22 attack that left 26 people dead.

The 1960 Indus Waters Treaty, brokered by the World Bank, allocates water from six rivers shared by the two countries. It guarantees Pakistan access to waters that irrigate nearly 80 percent of its farmland.

Awan said Pakistan would oppose any attempts to alter the treaty outside of its legal framework.

The nuclear-armed neighbors had earlier engaged in their most intense military confrontation in decades before agreeing to a US-brokered ceasefire on May 10.

India and Pakistan have fought three wars since gaining independence in 1947, two of them over Kashmir, which both claim in full but administer in part. India accuses Pakistan of supporting Kashmiri separatists in the disputed region, a charge Pakistan denies.

Tensions further escalated on Wednesday between the two countries when a suicide bombing targeted a school bus in Pakistan’s southwestern Balochistan province, killing six people, including four children.

Pakistan’s government and military accused “Indian terror proxies” of orchestrating the attack, an allegation India rejected.

In the fallout from the April attack, both countries have halted trade, closed borders and suspended most visa processing, deepening diplomatic and economic strains.


Pakistan PM orders accelerated privatization of power sector to tackle losses

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Pakistan PM orders accelerated privatization of power sector to tackle losses

  • Tenders to be issued for privatization of three major electricity distribution firms, PMO says
  • Sharif says Pakistan to develop battery energy storage through public-private partnerships

ISLAMABAD: Pakistan’s prime minister on Monday directed the government to speed up privatization of state-owned power companies and improve electricity infrastructure nationwide, as authorities try to address deep-rooted losses and inefficiencies in the energy sector that have weighed on the economy and public finances.

Pakistan’s electricity system has long struggled with financial distress caused by a combination of factors including theft of power, inefficient collection of bills, high costs of generating electricity and a large burden of unpaid obligations known as “circular debt.” In the first quarter of the current financial year, government-owned distribution companies recorded losses of about Rs171 billion ($611 million) due to poor bill recovery and operational inefficiencies, official documents show. Circular debt in the broader power sector stood at around Rs1.66 trillion ($5.9 billion) in mid-2025, a sharp decline from past peaks but still a major fiscal drain. 

Efforts to contain these losses have been a focus of Pakistan’s economic reform program with the International Monetary Fund, which has urged structural changes in the energy sector as part of financing conditions. Previous government initiatives have included signing a $4.5 billion financing facility with local banks to ease power sector debt and reducing retail electricity tariffs to support economic recovery. 

“Electricity sector privatization and market-based competition is the sustainable solution to the country’s energy problems,” Prime Minister Shehbaz Sharif said at a meeting reviewing the roadmap for power sector reforms, according to a statement from the prime minister’s office.

The meeting reviewed progress on privatization and infrastructure projects. Officials said tenders for modernizing one of Pakistan’s oldest operational hubs, Rohri Railway Station, will be issued soon and that the Ghazi Barotha to Faisalabad transmission line, designed to improve long-distance transmission of electricity, is in the initial approval stages. While not all power-sector decisions were detailed publicly, the government emphasized expanding private sector participation and completing priority projects to strengthen the electricity grid.

In another key development, the prime minister endorsed plans to begin work on a battery energy storage system with participation from private investors to help manage fluctuations in supply and demand, particularly as renewable energy sources such as solar and wind take a growing role in generation. Officials said the concept clearance for the storage system has been approved and feasibility studies are underway.

Government briefing documents also outlined steps toward shifting some electricity plants from imported coal to locally mined Thar coal, where a railway line expansion is underway to support transport of fuel, potentially lowering costs and import dependence in the long term.

State authorities also pledged to address safety by converting unmanned railway crossings to staffed ones and to strengthen food safety inspections at stations, underscoring broader infrastructure and service improvements connected to energy and transport priorities.