New Delhi – May 8, 2025
World Bank President Ajay Banga met Prime Minister Narendra Modi in New Delhi today and stated categorically that the World Bank will not interfere in the bilateral Indus Waters Treaty (IWT) dispute between India and Pakistan.
The clarification comes amid rising tensions between the two neighbours, with Pakistan seeking international mediation over India’s ongoing infrastructure projects on rivers governed by the treaty. India, however, has consistently maintained that the matter falls strictly under bilateral jurisdiction, as per the terms of the 1960 agreement brokered by the World Bank itself.
“The World Bank respects the sovereignty of the Treaty’s signatories. We will not act outside the framework agreed upon by India and Pakistan,” Banga said after the meeting, signaling that the multilateral lender will refrain from taking sides or pushing for external arbitration.
The meeting also included broader discussions on India’s role in global development, economic resilience, and World Bank-backed infrastructure initiatives. Banga, who has Indian roots and now leads one of the most influential international financial institutions, reaffirmed the World Bank’s commitment to supporting India’s growth journey, especially in climate action, digital infrastructure, and inclusive development.
India has repeatedly objected to Pakistan’s attempts to politicize the water-sharing treaty. Sources in the MEA emphasized that the IWT has stood the test of time, and India’s hydropower projects on the Chenab and Jhelum rivers remain within legal parameters.
With Banga’s non-intervention statement, India sees the reaffirmation of its position on bilateral dispute resolution as a diplomatic win, especially at a time when regional narratives are being tested in global forums.
