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Home Business & Finance Economic Policies

India deepens cut as Pakistan sends out ‘act of war’ threat todayheadline

April 25, 2025
in Economic Policies
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Pakistan on Thursday said it may suspend all bilateral agreements with India, including the 1972 Simla Agreement, and warned that any attempt to stop or divert the flow of water sanctioned under the Indus Waters Treaty will be considered an “act of war.”

India responded later on Thursday, saying it stood by its decision and that Pakistan had breached the conditions of the treaty.

It also closed its airspace to Indian-owned or operated flights, expelled a number of Indian diplomats and suspended all visas issued to Indian nationals as part of tit-for-tat measures a day after the Narendra Modi government announced a raft of diplomatic steps against Pakistan, accusing it of involvement in the terrorist attack near Pahalgam that killed at least 26 civilians.

New Delhi simultaneously announced suspended visa services to Pakistani nationals with immediate effect.

A statement issued by Pakistan Prime Minister’s Office, which also cited the Waqf Act, dismissed New Delhi’s allegations.

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It said, “Pakistan shall exercise the right to hold all bilateral agreements with India, including but not limited to the Simla Agreement, in abeyance, till India desists from its manifested behaviour of fomenting terrorism inside Pakistan, transnational killings, and non-adherence to international law and UN Resolutions on Kashmir.” The statement was issued after Pakistan Prime Minister Shehbaz Sharif chaired a meeting of the National Security Committee following his return from Turkiye.New Delhi briefed envoys of P5 states and other key partners, including from G20, on Pakistan’s role in the terrorist attack. Some envoys told ET on condition of anonymity that they appreciated the briefing that was “extremely useful” to understand the severity of the situation.

India is grateful for the support it received following the terror strike, said officials.

Meanwhile, the external affairs ministry announced that all existing valid visas issued by India to Pakistani nationals stand revoked with effect from April 27, while medical visas will be valid till April 29. A day earlier, the ministry had revoked all SAARC visas.

“Indian nationals are strongly advised to avoid travelling to Pakistan. Those Indian nationals currently in Pakistan are also advised to return to India at the earliest,” the ministry said.

Officials said Pakistani nationals visiting India are often found guilty of overstaying their visas and indulging in activities that are beyond the scope of normal tourists and visitors.

Bilateral Break

Under the Simla Agreement, signed by the then prime ministers Indira Gandhi and Zulfikar Ali Bhutto, India and Pakistan pledged to resolve all disputes, including the Kashmir issue, bilaterally and without third-party intervention.

However, Pakistan has often sought to internationalise the Kashmir issue, experts said. Similarly, they said, the ceasefire line in Jammu and Kashmir, as it stood on December 17, 1971, was redesignated as the Line of Control (LoC) under the pact, but Pakistan Army has often transgressed.

People familiar with the matter said that now Pakistan may exercise the right to put nuclear confidence-building measures on hold.

On Thursday, Islamabad also announced that all trade with India, including to and from any third country through Pakistan, is suspended forthwith.

India-Pakistan trade is already minuscule, though, having been suspended by the erstwhile Imran Khan government in Islamabad in 2019, and the decision will not have any major impact, according to people in the know.

The neighbouring nation rejected India’s announcement on holding the Indus Waters Treaty in abeyance and indicated response with full force across the complete spectrum of national power.

Experts said India’s decision does not mean an immediate halt to water flowing from India to Pakistan. Under the current treaty, India is restricted from building reservoir dams on the Indus, Chenab and Jhelum rivers. Suspending the treaty technically lifts those restrictions, allowing India to construct reservoir dams.

The treaty, signed in 1960 and brokered by the World Bank, governs the use of six rivers in the Indus Basin – eastern rivers Ravi, Beas and Sutlej allocated to India and western rivers Indus, Jhelum and Chenab allocated to Pakistan. India is allowed to use the western rivers for non-consumptive purposes such as irrigation, storage and electricity generation.

Pakistan also decided to close down the Wagah Border Post with immediate effect. All cross-border transit from India through this route shall be suspended, without exception, it said. Those who have crossed with valid endorsements may return through that route no later than April 30, that government said.

Pakistan suspended all visas under the SAARC Visa Exemption Scheme (SVES) issued to Indian nationals and deemed them cancelled with immediate effect, with the exception of Sikh religious pilgrims. Indian nationals, except Sikh pilgrims, currently in Pakistan under the SVES are instructed to exit within 48 hours, it said.

Mirroring India’s move, Islamabad declared the Indian defence, naval and air advisors in Islamabad persona non grata and directed them to leave by the end of this month. The strength of the Indian High Commission in Islamabad will be reduced to 30 diplomats and staff members, from 55, with effect from April 30.

Tags: Actbilateral agreementscutdeepensIndiaIndia-Pakistan relationsIndus Waters TreatyPakistansendsSimla Agreementterrorist attack Pahalgamthreattodayheadlinetrade suspensionwar
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