Finshots Daily The economics of the Indus Waters Treaty explained
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Apr 28, 2025 Discover how the 1960 Indus Waters Treaty plays a crucial role in both India and Pakistan's agricultural economies. Learn about the historical context of this vital agreement and its importance in resource management. Delve into the economic fallout of suspending the treaty, highlighting its effects on Pakistan's agriculture and energy sectors. The discussion also reveals India's strategic advantages and the potential environmental risks that may arise from jeopardizing this longstanding treaty. Tune in for an insightful analysis!
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Indus Waters Treaty Cooperation
- The Indus Waters Treaty split control of rivers between India and Pakistan with the World Bank as arbitrator.
- It remained a rare symbol of cooperation despite wars and tensions for over six decades.
Data Sharing Is Treaty Core
- Suspending the treaty mainly affects India's sharing of river data to Pakistan.
- It allows India to withhold critical flood and dry season water flow information, raising risks for Pakistan.
Pakistan's Agriculture At Risk
- Pakistan's agriculture relies heavily on Indus Basin waters for irrigation and exports like cotton and Basmati rice.
- Reduced water flow risks crop failures, hurting exports and Pakistan's economy deeply.