ISLAMABAD: Finance Minister Ishaq Dar has said the World Bank’s decision to put on hold the process of formation of a court of arbitration for resolving disputes between Pakistan and India will “seriously prejudice” Pakistan’s interests and rights under the Indus Waters Treaty (IWT) and urged the head of the World Bank Group to appoint the chairman of the court as soon as possible.

The finance minister has made the request in a letter he has sent to the president of the group, Jim Yong Kim, in response to the World Bank’s decision to put on hold the process of “empanelment of the Court of Arbitration” under the treaty.

In his letter, Mr Dar has said the IWT of 1960 does not provide for a situation in which a party could “pause” performance of its obligations under it.

Decision to halt process of court formation termed departure from group’s earlier stance

The letter that has been sent with the approval of all the stakeholders strongly conveys to the president of the group that the matter of appointment of a chairman of the court of arbitration has been inordinately delayed.

Mr Dar has written the letter in response to a communication sent by the president of the World Bank Group on Dec 12.

The finance minister has asked the World Bank to fulfil its obligations under the Indus Waters Treaty as the “chosen appointing authority” and appoint the chairman of the court expeditiously.

He has noted that the ‘pause’ proposed by the group’s president will merely prevent Pakistan from approaching a competent forum and having its grievances addressed.

He has stated that the group’s letter is a departure from the World Bank’s earlier position, conveyed in its letter of Oct 18.

In that message the World Bank had stated: “The Bank’s role is limited in character, and relates only to the exercise of procedural functions which do not touch upon the factual or legal merits of the contested issues.”

Finance Minister Dar has now maintained that as acknowledged by the World Bank, the bank has a well-defined role, which should remain consistent with the provisions of the treaty.

Published in Dawn, December 25th, 2016