
New Delhi, january 21, 2026: In a move that has fundamentally altered the geopolitical landscape of South Asia, India’s decision to hold the 1960 Indus Waters Treaty (IWT) in “abeyance” following the 2025 Pahalgam terror attack has plunged Pakistan into an unprecedented “water panic.” As of early 2026, the diplomatic freeze has evolved from a symbolic protest into a structural crisis for Pakistan’s agricultural and energy security.
The crisis was ignited on April 22, 2025, when a deadly terror attack in Pahalgam, Jammu & Kashmir, claimed 26 lives. Attributing the strike to Pakistan-based proxies, the Indian government rapidly escalated its response beyond traditional military signaling. Chaired by Prime Minister Narendra Modi, the Cabinet Committee on Security (CCS) announced that “blood and water cannot flow together,” formally suspending the IWT—a treaty that had survived three full-scale wars.
India’s strategy of holding the treaty in abeyance has stripped away the predictability that Islamabad relied on for over six decades. The impact has been three-fold:
The panic in Islamabad is not merely diplomatic; it is existential. Over 80% of Pakistan’s cultivated land depends on the Indus system. Without guaranteed flows:
Pakistan has intensified its efforts to “internationalize” the issue, raising it at the UN and the Indo-Pacific Ministerial Forum. However, with India refusing to engage until “terrorism abates,” the stalemate continues. Experts warn that the erosion of the IWT marks the end of an era of water-sharing as a “peace-bridge,” turning the rivers instead into a permanent front of “gray-zone” warfare.
As the 2026 UN Water Conference approaches, the world watches a dangerous precedent: a “perpetual” treaty effectively neutralized by the security concerns of an upper-riparian powerhouse.