Follow Us;Resize=(820,462) "Traders")
The treaty has governed the use of water from six rivers flowing between the two nations and is vital to Pakistan’s agricultural survival.
Even as India and Pakistan agreed to a ceasefire along the border, Prime Minister Narendra Modi delivered a firm and unambiguous message: peace cannot coexist with terror. In a national address on Monday, PM Modi declared, "India's stand is very clear — terror and talks cannot go together, terror and trade cannot go together, and water and blood cannot flow together."
Behind those powerful words lies a broader and ongoing strategy — India's sustained economic and strategic squeeze on Pakistan, which remains intact despite the ceasefire.
Key measures that remain in force
Related Articles
1. Suspension of Indus Waters Treaty:
India has suspended the Indus Waters Treaty (IWT) — a landmark water-sharing pact signed in 1960 under the aegis of the World Bank. The treaty has governed the use of water from six rivers flowing between the two nations and is vital to Pakistan’s agricultural survival.
According to Indian officials, the Indus system accounts for 80% of irrigation on Pakistan's 16 million hectares of farmland and 93% of the country's water usage. The potential disruption to these flows could lead to severe consequences — crop failures, food shortages, blackouts, and even a wider economic crisis.
India is now pushing forward with four hydroelectric projects in Jammu & Kashmir aimed at increasing its water usage from the western rivers. These are expected to scale up India's hydropower capacity in the region from 4,000 MW to over 10,000 MW — a move that will not only boost India's energy security but also reduce Pakistan's access to crucial water reserves.
2. Ban on Direct and Indirect Trade Remains:
On May 2, the Directorate General of Foreign Trade (DGFT) issued a notification that imposes a total ban on both direct and indirect trade with Pakistan under India's Foreign Trade Policy 2023. While direct trade between the neighbours had been minimal, it is the clampdown on indirect imports — worth an estimated $500 million annually — that hits Pakistan the hardest.
These goods, including dry fruits and industrial chemicals, were previously being routed to India through third countries. The ban empowers customs authorities to intercept and block such shipments, closing a crucial economic loophole for Pakistani exporters.
3. Shipping and Postal Restrictions Still Enforced:
The Indian Postal Department has maintained its ban on all parcel and mail exchanges with Pakistan, both by air and land. Additionally, ships under Pakistan's flag remain barred from docking at Indian ports, and Indian vessels are prohibited from entering Pakistani harbours.
