World Bank Chief Ajay Banga in India, Meets PM Modi, Has This to Say About Indus Treaty

Amid rising tensions and speculation over Indus Waters Treaty, World Bank chief Ajay Banga says institution remains only a “facilitator”, not a mediator.

New Delhi, May 9, 2025:
World Bank President Ajay Banga has categorically stated that the global financial institution will not mediate the ongoing political and military tensions between India and Pakistan, dismissing recent media speculation. His remarks come at a time of high alert in the region following India’s Operation Sindoor, which targeted nine terror camps in Pakistan and Pakistan-occupied Kashmir.

Also Read: 228 Flights Cancelled at Delhi Airport as India-Pakistan Tensions Intensify; 24 Airports Remain Shut

“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,” said Mr Banga. “The World Bank’s role is merely as a facilitator.”

Mr Banga met Prime Minister Narendra Modi in Delhi on Thursday, prompting conjecture about possible economic and diplomatic implications, especially given the backdrop of India’s decision to suspend the Indus Waters Treaty (IWT). However, the Indian government clarified that the meeting focused on investment opportunities in Uttar Pradesh, where Mr Banga is also scheduled to meet Chief Minister Yogi Adityanath.

Also Read: Pakistan Used Civilian Flights As Shield During Drone Attack, Says Indian Air Force

The World Bank’s denial also comes amid speculation that it might intervene in the Indus water-sharing dispute. Historically, the World Bank played a critical role in facilitating the IWT in 1960, a pact that survived wars and multiple conflicts between the two nations. The treaty governs the allocation of waters from the Indus, Jhelum, and Chenab rivers—critical for Pakistan’s agriculture.

India’s suspension of the treaty, following the Pahalgam terror attack on April 22 that killed 26 civilians, has triggered sharp rhetoric from Pakistan, with some calling it “an act of war.” However, Foreign Secretary Vikram Misri defended India’s move, citing the treaty’s preamble which frames it as an agreement made in “a spirit of goodwill and friendship”—a spirit India says no longer exists.

Also Read: India-Pakistan Conflict Live: Pakistani Drone Attack Targets 36 Sites With 300-400 Turkish-Made UAVs, Says Indian Army

“The fact is, there have been fundamental changes to the circumstances in which the treaty was concluded. It is time to reassess those obligations,” Misri said, indicating a potential long-term shift in India’s water diplomacy.

Tags:
India-Pakistan tensions, Ajay Banga, World Bank, Indus Waters Treaty, Operation Sindoor, Pahalgam terror attack, Narendra Modi, Vikram Misri, India Pakistan conflict, water diplomacy, OperationSindoor,