Background:
- The Indus Water Treaty (IWT) of 1960 governs water sharing between India and Pakistan.
- The Neutral Expert (NE), appointed by the World Bank, resolves technical disputes under the treaty, particularly on hydroelectric project designs.
Relevance : GS 2(International Relations)
Key Development (January 7):
- Michel Lino, the NE, declared himself “competent” to resolve technical differences on the design of hydroelectric projects on the Indus.
- India welcomed this decision, supporting the use of the IWT’s existing dispute resolution framework.
Current Dispute:
- India’s Position: Seeks renegotiation of the IWT for future water security, citing geopolitical and resource concerns. Requests for renegotiation made in January 2023 remain unanswered.
- Pakistan’s Position: Insists on adhering to the existing treaty and dispute resolution mechanisms.
Dispute Resolution under IWT:
- Permanent Indus Commission (PIC): Initial dispute resolution step.
- Neutral Expert (NE): If PIC fails, the NE adjudicates technical disputes.
- Court of Arbitration: If both previous steps fail, the issue moves here for final resolution.
- India: Believes all steps must be exhausted before moving to the next stage.
- Pakistan: Seeks a Court of Arbitration despite India’s objections, arguing for parallel dispute mechanisms.
Recent Developments:
- India: Halted PIC meetings in September 2022, requested treaty revisions four times since January 2023, but received no formal response.
Neutral Expert’s Role:
- Michel Lino’s role is to adjudicate on whether the Kishenganga and Ratle hydroelectric projects comply with the IWT.
- His decision focuses on technical aspects of the projects’ design.
World Bank’s Role:
- The World Bank facilitates the dispute resolution process, though its involvement has led to conflicting outcomes.
Looking Ahead:
- Lino will hear both countries before deciding on the compliance of the Kishenganga and Ratle projects.
- His decision could impact ongoing tensions over water rights and hydroelectric development.
