The World Bank has made it clear that it will not get involved in solving the long-standing political and military issues between India and Pakistan. On Friday, World Bank President Ajay Banga said, “There is a lot of talk in the media about the World Bank fixing the problem… but that’s not true. Our role is only to help as a facilitator.” His statement came after the Indian government shared a message from him to clear up the confusion.

Mr. Banga met Prime Minister Narendra Modi in Delhi on Thursday. The timing of the meeting caught attention because it happened just a day after India carried out Operation Sindoor, a major strike that destroyed nine terror camps in Pakistan. Around the same time, India was also dealing with missile and drone attacks from Pakistan.

The World Bank wanted to make it clear that while it supports peace and cooperation, it will not be taking an active role in resolving tensions between the two countries. A government statement later clarified that World Bank President Ajay Banga was in India to discuss investment opportunities in Uttar Pradesh, a BJP-ruled state that will have Assembly elections in 2027. His visit also included meetings with UP Chief Minister Yogi Adityanath.

Despite this, Mr. Banga’s visit during a time of heightened tensions between India and Pakistan led to speculation that India might try to use the World Bank’s influence to pressure Pakistan’s already struggling economy. There was also talk that the World Bank could step in to help resolve the dispute over Pakistan’s suspension of the Indus Waters Treaty.

This speculation comes from the fact that the World Bank played a key role in 1960 in helping India and Pakistan sign the Indus Waters Treaty, an agreement on how to share the waters of the Indus river system.To address these rumours, the World Bank made it clear on Friday that it has no intention of getting involved in the current tensions. It said its role is only that of a facilitator, not a fixer or negotiator between the two countries.

It took nine years of discussions and cooperation between Indian and Pakistani engineers, with support from the World Bank, before the Indus Waters Treaty (IWT) was finally signed in 1960. The treaty managed to survive three wars and numerous clashes between the two nations.

However, 65 years later, the situation has changed. India suspended the treaty following the deadly terror attack in Pahalgam on April 22, which claimed several lives. The IWT is extremely important for Pakistan, as it provides nearly 80% of the water needed for its agricultural land through the Indus, Ravi, and Jhelum rivers, known as the ‘western rivers’.

Pakistan responded by calling India’s move “an act of war.” But on Thursday, Foreign Secretary Vikram Misri defended India’s decision. He reminded everyone that the treaty was signed in a time of “goodwill and friendship,” which no longer exists today.

Misri said, “It is India’s patience that, even after 65 years of terror attacks and provocations, we still honoured the treaty.” However, he emphasised that the situation has changed drastically since 1960, and it is time to review the commitments made under the agreement.