New Delhi: The World Bank, on Friday, distanced itself from the growing speculation surrounding its role in resolving the long-standing tensions between India and Pakistan. World Bank President Ajay Banga, through a statement shared by the Indian government, emphasized that the bank’s involvement is strictly as a facilitator and not as a mediator in political or military conflicts.
Mr. Banga addressed the media’s claims that the World Bank might intervene to resolve the decades-old political issues between India and Pakistan, stating, “We have no role to play beyond that of a facilitator.” He added, “There is a lot of speculation in the media about how the World Bank will step in and fix the problem… but it is all bunk. The World Bank’s role is merely as a facilitator.”
Banga had met with Prime Minister Narendra Modi in Delhi on Thursday, which fueled discussions regarding the timing of the visit. This meeting came just a day after India’s Operation Sindoor, which successfully destroyed nine terrorist camps in Pakistan, and amid ongoing Pakistani missile and drone attacks that were repelled by Indian forces. Speculation was rife that India might press the World Bank to exert pressure on Pakistan’s already struggling economy.
However, the government later clarified that Banga’s visit was focused on investment opportunities in Uttar Pradesh, where the BJP will face an Assembly election in 2027. His visit also included discussions with UP Chief Minister Yogi Adityanath.
Despite the clarifications, the World Bank’s message aimed to address further speculation that the organization might broker a deal between India and Pakistan, particularly concerning the suspension of the Indus Waters Treaty (IWT). This treaty, signed in 1960 after years of negotiations facilitated by the World Bank, has been a cornerstone of water sharing between the two nations. The treaty stood resilient despite three wars and several military skirmishes between the two countries.
However, in the wake of the April 22 terror attack in Pahalgam, India decided to suspend the treaty. Pakistan, for whom the Indus system is vital—supplying almost 80% of its agricultural water—has condemned this suspension, calling it “an act of war.”
India, however, has justified its actions. Foreign Secretary Vikram Misri, speaking on the issue Thursday, asserted India’s right to review the IWT, stating that the treaty was originally signed in “a spirit of goodwill and friendship,” a sentiment no longer prevalent. Misri highlighted that despite 65 years of attacks and provocations, India had adhered to the treaty, but fundamental changes in the geopolitical landscape warranted a reassessment of obligations under the treaty.
The tension over the IWT represents a significant escalation, with India questioning whether the terms of the 1960 agreement can continue to hold given the changing circumstances.
