Hydroelectric projects in IIOJ&K: Govt has not yet taken decision on mode of dispute settlement

ISLAMABAD: Pakistan has reportedly not yet taken a decision on mode of settlement of dispute on two Indian hydroelectric projects in Indian Illegally Occupied Jammu and Kashmir (IIOJ&K), well-informed sources told Business Recorder.

The dispute on Kishanganga and Ratle hydroelectric projects has already landed in the World Bank (WB), which brokered the Indus Water Treaty in 1960 between Pakistan and India.

“Pakistan is engaged with the World Bank with regard to outstanding disputes against India on Kishanganga and Ratle hydroelectric projects,” the sources added. This dispute between the two countries exists since 2016.

The Bank is also actively pursuing the case in consultation with both the parties to settle the dispute however the tilt of Bank is towards India’s proposed mode of settlement of the dispute.

According to sources, some officials want to resolve the dispute through the court of arbitration as the experience of a neutral expert in the past was not in Pakistan’s favour in real terms.

There is also a strong impression in Islamabad that the World Bank has not extended fair treatment despite the fact that it approached the Bank on the dispute and not India. However, the Bank has not treated its complaint judiciously. Both India and the World Bank want settlement of dispute through a neutral expert whereas authorities in Islamabad are in a state of “ifs and buts” and no final decision has yet been firmed up.

In August 2020, World Bank’s outgoing Country Director to Pakistan, Illango Patchamuthu, during his interaction with Pakistani media, stated that the World Bank cannot take an independent decision on appointment of a neutral expert or court of arbitration (CoA) for settlement of the water dispute between Pakistan and India.

Pakistan, sources said, had initially conveyed its intention of setting up of Court of Arbitration but the World Bank pressed on appointment of a neutral expert, which was proposed by India.

“In other words, Pakistan has become hostage in the hands of the World Bank,” said an expert who deals with water issues. The World Bank, sources said, has agreed to further proceed on water dispute but is proposing that this case should be placed simultaneously before the neutral expert and International Court of Arbitration, which Pakistan believes is not a feasible option as ICA is not part of the Treaty.

Copyright Business Recorder, 2021