Pakistan is constantly furious after India temporarily suspended the 1960 Indus Water Agreement. From the military officer of Pakistan to the leaders, leaders have been making statements. After Bilawal Bhutto’s recent Indus Water Treaty statement, now Pakistan Prime Minister Shahbaz Sharif has also poisoned against India. He has said jackal, saying that Pakistan will not allow even a drop of water of its rights from India. Recently, PAK Army Chief General Asim Munir had also said that if India creates a dam, Pakistan will drop it with missiles. He threatened the nuclear attack and said, if we are drowning, half the world will be drowned. Apart from this, former Foreign Minister Bilawal Bhutto has also made rhetoric on the matter related to the Indus Water Agreement.

Meanwhile, India has started the tender process for the National Hydro Electric Power Project on Chenab River near Indus village in Jammu and Kashmir. Pakistan is afraid that India may stop water from this project and will have a serious impact on agriculture, irrigation and power generation. Although India’s attitude is clear, this project comes under international standards and India’s jurisdiction. Pakistan’s concern is also increasing with the fact that India is already controlled by the Sutlej, Beas and Ravi rivers and now if India is active on other rivers of the Indus basin, then its water crisis will become serious.

Shehbaz Sharif Warns India of “Serious Consequences” If the Indus Water Treaty is Touched… BeCause in Pakistan’s WorldView, Water is off-Limits But Exporting MILITANTS MILITANTS IS FAIR GAME.

Four Threats in 48 hrs from 4 men reading the same isi script. Islamabad’s version of water… pic.twitter.com/dwxv9hbspn

– Mariam Solaimankhil (@mariamistan) August 12, 2025

Pahalgam terrorist attack
After the terrorist attack on April 2025 in Pahalgam, Jammu and Kashmir, the Government of India took a major step and temporarily suspended the 1960 Indus Water Agreement. This decision was taken in the Cabinet Committee on Security (CCS) meeting, which was aimed at teaching Pakistan a lesson to protect terrorism. After this decision, there is a stir at both political and military leadership levels in Pakistan.

Possible crisis for Pakistan
The Indus, Jhelum and Chenab rivers have 80% irrigation and agricultural production of Pakistan. These rivers meet 70% of its water needs. In case of water stopping, sowing and harvesting will be affected both in both kharif and rabi season. There will be a shortage of drinking water in big cities like Lahore, Karachi and Islamabad. The textile sector, which holds 60 per cent of the total exports of Pakistan, will also be seriously affected. Pakistan’s 33% of the electricity comes from hydropower, which will also be affected.

1960 Indus Water Agreement: Background
India has got control of Ravi, Vyas and Sutlej under the 1960 Indus Water Agreement in the World Bank’s mediation. Pakistan was given control of Indus, Jhelum and Chenab. Now, the settlement of the agreement and the introduction of new projects is likely to change the balance.

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Moody on indian economy: Global rating agency Moody’s Rating is full of full confidence in the Indian economy. He said in his estimate on Wednesday that despite American tariffs and global business challenges, India is in good position to better deal with its negative impact. The reason for this is the domestic growth driver and low dependence on exports are supporting the economy.

A statement issued by Moody’s Ratings said that government steps to promote private consumption, expand manufacturing capacity and increase spending on infrastructure will help in compensating for the weakening scenario of global demand. Reduction in inflation leads to a possibility of cutting interest rates, which will give more support to the economy. There will be facility in giving loans from cash in the banking sector.

Moody’s trust in Indian economy

Moody’s said, “India is in a better position in dealing with American tariffs and global trade challenges compared to many other emerging markets, which emphasize strong internal growth factors, large domestic economy and low dependence on goods trade.”

The rating agency had reduced India’s economic growth estimates from 6.7 percent to 6.3 percent earlier this month. The agency changed the estimates after the situation arising out of the announcement of an increase in the US tariff.

Effect of Indo-Pak tension

The global rating agency further says that the kind of tension that has been seen after the Pahalgam attack between India and Pakistan, it will have a big impact on Pakistan’s economic growth, while the influence in India is very limited. The agency said that even if there is tension between the two neighboring countries, it will not have much impact on India’s economic activities, because trade between countries is very limited days.

Significantly, on May 2, the tariff was announced by US President Donald Trump. However, after that, except China, other countries of the world, while braking for 90 days on the rates of tariffs, retained a tariff of 10 percent. However, some areas were exempted from it while high tariff rates have been imposed on Indian steel and aluminum.

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