India-pak Tensions: World Bank Chief Ajay Banga Holds Key Talks With Pm Modi Amid Indus Waters Treaty Suspension

World Bank Group President Ajay Banga met pinch Prime Minister Narendra Modi connected Thursday, a important improvement against nan backdrop of escalating tensions betwixt India and Pakistan pursuing Operation Sindoor.

The gathering comes a time aft India carried retired targeted airstrikes connected panic camps successful Pakistan and Pakistan-Occupied Kashmir successful consequence to nan heinous Pahalgam panic onslaught past month. In retaliation, Pakistan attempted coordinated strikes connected Indian subject installations crossed 15 cities, which were thwarted. India responded swiftly by targeting Pakistani aerial defence systems.

Adding further weight to Thursday's gathering is India's caller move to suspend nan Indus Waters Treaty, a landmark water-sharing statement signed successful 1960 betwixt past Prime Minister Jawaharlal Nehru and Pakistan President Ayub Khan. The World Bank played a pivotal domiciled successful facilitating nan nine-year-long negotiations that led to nan pact and remains a cardinal signatory to nan accord.

Following nan suspension, India halted nan merchandise of h2o done nan Baglihar reservoir connected nan Chenab river. Located successful Jammu and Kashmir’s Ramban district, nan run-of-the-river task generates 900 MW of hydroelectric power. Built nether nan provisions of nan Indus Waters Treaty, nan reservoir tin only clasp h2o up to a definite level earlier being required to merchandise it.

India’s move to artifact nan travel of water—even temporarily—is being seen arsenic a strategical awesome to Pakistan, underscoring nan seriousness of its consequence amid mounting hostilities. However, experts statement that immoderate semipermanent stoppage would require structural changes to nan dam—something that cannot beryllium done overnight.

Ajay Banga’s visit, successful this context, is viewed arsenic a important engagement, fixed nan World Bank’s humanities and organization engagement successful nan pact and nan region’s stability.

It was precocious announced that India will beryllium making a petition to world multilateral agencies specified arsenic nan International Monetary Fund (IMF) and nan World Bank to reassess their financial assistance to Pakistan pursuing nan tragic panic onslaught successful J&K's Pahalgam that resulted successful nan nonaccomplishment of 26 guiltless lives. This negotiated inaugural precedes an important IMF executive committee gathering scheduled for May 9, during which Pakistani officials will beryllium discussing nan first reappraisal of their Extended Fund Facility and a petition for nan Resilience and Sustainability Facility. 

The committee will besides beryllium considering a caller $1.3 cardinal ambiance resilience indebtedness and continuing nan appraisal of a $7 cardinal bailout package. In summation to nan IMF, India is expected to definitive its concerns pinch nan Asian Development Bank (ADB) and nan World Bank.

By nan extremity of 2024, ADB had allocated $43.4 cardinal to Pakistan crossed 764 loans, grants, and method assistance projects. Presently, nan sovereign portfolio consists of 53 loans and 3 grants totaling $9.13 billion. Notably, a $320 cardinal indebtedness was approved for agrarian roadworthy improvement successful Khyber Pakhtunkhwa. Additionally, successful January 2025, nan World Bank authorised a $20 cardinal assistance package for Pakistan to reside nan country's increasing economical difficulties.

(With agency inputs)

Published on: May 8, 2025 6:21 PM IST