World Bank Receives Request From Pakistan Under Indus Waters Treaty

Contacts:

In Washington DC:

Dale Lautenbach (202) 473-3405

E-mail:  dlautenbach@worldbank.org  

In Islamabad:

Shahzad Sharjeel (051) 819-781
E-mail: ssharjeel@worldbank.org

In Delhi:

Sumir Lal: (9111) 2461-7241
E-mail: slal@worldbank.org

WASHINGTON, January 18, 2005 – The World Bank today received a letter from the Government of Pakistan asking the Bank to appoint a “neutral expert” under the Indus Waters Treaty.

The World Bank will examine the request and follow the procedures laid down by the Treaty.

The Indus Waters Treaty was concluded by India and Pakistan on September 19, 1960. The World Bank is a signatory to the Treaty for certain specified purposes. It is not a guarantor of the Treaty. Many of the purposes for which the World Bank signed the Treaty have been completed. There are now three remaining responsibilities for the World Bank under the Treaty, relating to settlement of differences and disputes.

Disagreements by the parties on the interpretation of the provisions of the Treaty are classified into three categories: questions are examined by the Permanent Indus Commission; differences by a Neutral Expert; and disputes by a Court of Arbitration.  

According to the Treaty, the remaining responsibilities of the World Bank are:

One, a role for the World Bank in the appointment of a Neutral Expert. The first step under the Treaty is to resolve any "question" through the Permanent Indus Commission itself. If the "question" is not resolved there, it becomes a "difference" and is referred to a Neutral Expert, to be appointed by the two countries, or by a third party agreed upon by the two countries. In the absence of such an agreement, the appointment of the Neutral Expert would be made by the World Bank, in consultation with the two countries. The decision of the Neutral Expert on all matters within his competence shall be final and binding.

Two, the management by the World Bank of a trust fund to meet the expenses of a Neutral Expert.

Three, a role for the World Bank in the establishment of a Court of Arbitration. If the “difference” does not fall within the mandate of the Neutral Expert, or if the Neutral Expert rules that the “difference” should be treated as a “dispute”, then a Court of Arbitration would be established. Under the Treaty, the World Bank has a role in the establishment of such a Court.

For More Information visit:

                                                  http://www.worldbank.org/indus