The statement said that as per the Indus Waters Treaty, signed between both countries and the World Bank in 1960, the World Bank has a specified role in the process of resolution of differences and disputes.
On the issue of differences between India and Pakistan on Kishanganga and Ratle Hydroelectric Projects under the Indus Waters Treaty, India had asked the World Bank to appoint a Neutral Expert to resolve the differences of a technical nature, which are within the domain of a neutral technical expert.
However, Pakistan had sought setting up of a Court of Arbitration, which is normally the logical next step in the process of resolution in the Treaty. The Neutral Expert can also determine that there are issues beyond mere technical differences.
It said that the World Bank decided to proceed with both steps simultaneously. India pointed out to the World Bank that the pursuit of two parallel difference/ dispute resolution mechanisms — a Neutral Expert and setting up a Court of Arbitration — at the same time is legally untenable.
