
Govt mulling resolving IWT row via Indus body
This was stated by Attorney-General for Pakistan Mansoor Usman Awan while speaking to Business Recorder.
The process involves Pakistan approaching the World Bank, the broker of IWT, for constitution of Court of Arbitration (CoA), after Indian government's unilateral decision of putting the IWT in abeyance subsequent to the 23 April 2025 terrorist attack near Pahalgam in Illegal Occupied Held Kashmir citing national security concerns.
IWT: PM hails arbitration court's ruling
'We are preparing our case to seek all legal remedies to stop New Delhi from blatant violation of the Treaty unilaterally which is still inforce as per the international law,' informed sources told Business Recorder.
According to Article 9 of IWT, if a question arises on the applicability of the Treaty between the two signatory countries, and in case both do not agree on a resolution mechanism bilaterally or G2G then the affected party will approach the third party. In this instance, the third party is CoA as a neutral expert is limited to deal only with the design of a project.
The remedy to approach CoA is the role of the World Bank, as no country as an aggrieved party can establish CoA itself and for this purpose agreement of both parties is not necessary.
The sources said, when an aggrieved party approaches the World Bank for establishment of CoA, the Bank has to establish CoA and it is the duty of CoA to take a decision on the application of the aggrieved country as it cannot hold the application on the grounds of reaching a consensus between the parties.
However, in case the World Bank does not forward Pakistan's application for establishment of CoA under influence of some 'powers' and puts it aside, even then it willbe to the benefit of Pakistan as it would have adopted a legal course in accordance with the law and in case of any other step the burden will be on India for not following the legal course.
'Pakistan has decided to adopt legal course. We will go to the Court of Arbitration which will give its verdict as per its mandate,' the sources said, adding that in case the World Bank does not establish CoA, it will be enough for the world powers to understand that whatever legal course was available Pakistan adopted it before taking any adverse action.
If CoA gives its verdict in favour of Pakistan and India does not implement it, then Pakistan has legal justification for considering it an act of war.
When the case is taken to the International Court of Justice (ICJ), both countries have to accept its jurisdiction. However, if the United Nations passes a resolution on the matter, then IJC is bound to hear an application/ petition of a party as an organ of UN like the World Bank.
CoA is established under Indus Waters Treaty whereas IJC can hear any case.
Currently, Pakistan is sharing water related data with India unilaterally which means if a question arises at any international fora if Pakistan has shared all the information with New Delhi, then Pakistan would be in the better position.
Pakistan has also shared information about variation in inflows in Chenab river at Maralla through Ministry of Foreign Affairs but received no response.
CoA recently delivered a supplemental award related to the Indus Waters Treaty (IWT) which was rejected by India, while Pakistan accepted it.
The decision relates to a dispute concerning the construction of hydroelectric power plants on the Western rivers, specifically the Kishanganga (2013) and Ratle (2015) projects. The CoA's supplemental award appears to address outstanding issues or clarifications following its earlier rulings.
In 25 January 2023, India issued a notice to Pakistan conveying its intent to amend the IWT within 90 days to guarantee that disputes would be handled between the two nations without any outside interference.
The notice of negotiation was issued just two days before the COA, established at Pakistan's request under the IWT, was to commence which was boycotted by India. According to the Attorney General of Pakistan's (AGP) office, on April 5, 2023, Pakistan responded to the Indian notice in which it was stated that Pakistan was ready to listen to New Delhi's concerns about the prevalent treaty at the level of the Permanent Commission of Indus Waters (PCIW).
The decision about the parleys on changes to the Treaty will be taken once Pakistan hears India's concerns at the PCIW level. However, under Article XII, the existing Treaty will continue to reign unless the parties to the dispute, Pakistan and India, bilaterally introduce changes to the Pact.
Copyright Business Recorder, 2025
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Business Recorder
2 hours ago
- Business Recorder
What falling out with the US means for India?
At the start of this year, relations between India and the United States appeared to be on an upward trajectory. In February, just a month after Donald Trump's return to the White House, Prime Minister Narendra Modi stood alongside his long-time friend at the White House, pledging to raise bilateral trade to $500 billion by 2030 and signalling the possibility of a comprehensive trade agreement. This bonhomie wasn't restricted to just trade – it reflected on defence cooperation, energy trade, and the Indo-Pacific security framework. Modi invited Trump to India for the planned Quad leaders' summit later this year, a gesture intended to cement the personal rapport between the two leaders. That optimism began to unravel in May when tensions between India and Pakistan flared dangerously. In a brief but intense escalation, Pakistan claimed to have shot down six Indian fighter jets and destroyed a BrahMos missile storage facility in Indian-Illegally Occupied Jammu and Kashmir. Both sides came perilously close to wider conflict before agreeing to a ceasefire on May 10. Trump publicly took credit for brokering the deal, calling it a personal diplomatic success. India, however, disputed that narrative, insisting it was a mutually agreed arrangement without US mediation. This disagreement planted the first seeds of mistrust. In June, the unease deepened when Trump invited Pakistan's army chief, Field Marshal Asim Munir to the White House for a high-profile lunch. The meeting, followed by announcements of a favourable US-Pakistan trade arrangement, an oil reserve development deal, new cooperation on cryptocurrency regulation, and Washington's acceptance of Pakistan's long-standing demand to designate the Balochistan Liberation Army and its Majeed Brigade as terrorist organisations, signalled a strategic warming between Washington and Islamabad. Days before the Trump-Munir meeting, Modi and Trump held a tense phone call on June 17. According to reports, the conversation further soured their relationship, unravelling years of carefully built goodwill. The economic blow By August, the rupture had translated into hard measures. Trump slapped 25% tariffs on Indian imports, accusing New Delhi of maintaining 'strenuous and obnoxious' trade barriers. Days later, he doubled the rate to 50%, the highest for any Asian partner, citing India's continued purchases of Russian crude as undermining the US sanctions regime against Moscow. He ruled out further negotiations until India cut its Russian oil imports. This escalation came despite five rounds of talks toward an interim trade deal, in which India had shown willingness to increase US energy and defence purchases and lower tariffs on American industrial goods. Political miscalculations and disagreements over agricultural norms and quotas ultimately doomed the talks, leaving $190 billion in annual trade and a $46 billion deficit unresolved. The tariff hike threatens India's $87 billion export engine to the US, 18% of its total exports and over 2% of its GDP. Industry experts warn of a 40-50% drop in shipments, especially in labour-intensive sectors such as textiles, jewellery, and automobiles. Small and medium-sized enterprises face a severe loss of competitiveness, while economists have trimmed GDP growth forecasts by as much as 1%. Market reaction has been swift: a weaker rupee, the risk of imported inflation, capital flight by foreign portfolio investors, and higher borrowing costs for foreign-currency debt. Strategic fallout The dispute undermines New Delhi's ambitions in the Indo-Pacific. While the foreign ministers of Australia, Japan, the US, and India recently met in Washington, the Quad leaders' summit now looks unlikely. Instead, India risks drifting closer to Russia, its long-time defence partner, and even exploring limited engagement with China, which Modi is set to visit later this month. For Washington, this marks a reversal of a 25-year strategy of building up India as a counterweight to China's rise. For New Delhi, it is a reminder of the volatility of personal diplomacy: the same leader who embraced Modi in Ahmedabad in 2020, before 100,000 cheering spectators, is now wielding tariffs as leverage. Political setback for Modi Domestically, the rupture is damaging for Modi. His image as a global statesman, reinforced by his perceived closeness to Trump, has been a key part of his appeal to India's middle class. The opposition Congress party has seized the moment, branding him 'Narendra Surrender' for failing to protect Indian trade interests. Even Hindu nationalist groups in the US, once among Trump's staunch supporters, feel abandoned by Washington's turn. With his Bharatiya Janata Party (BJP) having lost its parliamentary majority in the last election, Modi now faces questions about his handling of both foreign and economic policy. His perceived inability to counter China's assertiveness while losing favour in Washington could become a central vulnerability. The stakes At stake is more than just a trade dispute. The episode jeopardises three decades of India's economic ascent and its strategic positioning as an emerging power backed by a US partnership. Whether this moment leads to strategic drift, realignment toward other powers or eventual rapprochement with Washington will shape India's trajectory for years to come. The above article was contributed by Syed Ahmed Raza Rizvi, Senior Sub-Editor at Business Recorder (Digital).


Business Recorder
4 hours ago
- Business Recorder
India PM Modi likely to meet Trump in US next month, newspaper reports
NEW DELHI: Indian Prime Minister Narendra Modi is likely to meet President Donald Trump during a visit to the United States next month to attend the UN General Assembly meeting, the Indian Express newspaper reported on Wednesday, citing sources. Reuters could not immediately verify the information outside business hours. The General Assembly kicks off on Sept 9, but the annual meeting of heads of state and government will be held from Sept 23-29. Although the reason for the potential visit will be to attend the UN meeting in New York, a key objective will be to hold talks with Trump and iron out trade and tariff issues that have led to some souring of ties between the two countries, the newspaper reported. News of a possible Modi trip to the U.S. comes days after Trump announced an additional 25% tariff on Indian goods to penalise New Delhi for continuing to buy Russian oil. The penalty took the total levy on Indian goods exported to the US to 50%, among the highest levied on any U.S. trading partner. In India, Trump's tariffs spark calls to boycott American goods Trade talks between New Delhi and Washington collapsed after five rounds of negotiations over disagreement on opening India's vast farm and dairy sectors and stopping Russian oil purchases. On Tuesday, US Treasury Secretary Scott Bessent said several large trade agreements were still waiting to be completed, including with Switzerland and India, but New Delhi had been 'a bit recalcitrant' in talks with Washington. Bessent told Fox Business Network's 'Kudlow' he hoped the Trump administration could wrap up its trade negotiations by the end of October. 'That's aspirational, but I think we are in a good position,' he said, adding ' I think we can be, we will have agreed on substantial terms with all the substantial countries.'


Business Recorder
4 hours ago
- Business Recorder
Magic Moments maker ties up with Bollywood star Shah Rukh Khan to launch premium tequila
Radico Khaitan, the maker of 'Magic Moments' vodka, will invest up to $4.56 million and team up with Bollywood actor Shah Rukh Khan and Zerodha co-founder Nikhil Kamath to launch a premium tequila brand, marking its foray into the category. The Indian liquor maker, known for premium offerings such as Rampur Indian Single Malt and Jaisalmer Indian Craft Gin, will roll out the brand D'YAVOL Añejo — a premium spirit made from agave and aged about two years in wine casks. D'YAVOL, a luxury brand founded in 2022 by Shah Rukh Khan's son Aryan Khan, along with Leti Blagoeva and Bunty Singh, is headquartered in Amsterdam and offers vodka, blended malt Scotch whisky and premium streetwear. D'YAVOL Añejo is set to launch by December and depending on state excise duty, will be priced between 20,000 rupees ($228.21) and 30,000 rupees, Radico Khaitan Managing Director Abhishek Khaitan told Reuters on Tuesday. The launch comes as affluent Indians increasingly splurge on everything from luxury dining to premium alcohol, housing and cars. Alcohol sales in the country, according to data from analytics firm Crisil, are projected, to grow as much as 10% to $61.35 billion in fiscal 2026. Tequila is one of the fastest growing segments globally and India is catching on very fast. The market size in the country is about 300,000 cases, out of which 15% is the Añejo (Spanish word meaning 'aged') category, Khaitan said. Shah Rukh Khan set to host party for fans in Dubai this week 'We believe that in the next five years, tequila can reach a volume of about a million cases in India plus global market, so I think it was a great opportunity,' he said. Under the partnership, Radico Khaitan and Shah Rukh Khan's family will each hold a 47.5% stake in the venture, while Kamath will own 5%. The deal also underscores the fierce competition in mass and premium liquor segments. Just three weeks ago, peer Tilaknagar Industries bought the 'Imperial Blue' whisky brand from Pernod Ricard for $486 million.