After prolonged talks between the governments of India and Pakistan, the IWT was signed in September 1960 with World Bank standing guarantee for any dispute resolution. Broadly, according to this treaty, waters of the three western rivers (the Jhelum, the Chenab, and the Indus itself) were allocated to Pakistan, and those of the three eastern rivers (the Ravi, the Beas, and the Sutlej) were allocated to India. All these six rivers together called as Indus System of Rivers (ISR). PIC is the channel of correspondence between the two countries for the purpose of IWT and first step for conflict resolution. If an agreement cannot be reached at the PIC level, the dispute can be referred to a Neutral Expert for the differences already identified in the treaty or referred to the two governments for approaching the Permanent Court of Arbitration (PCA). If the governments too fail to reach an agreement, the Treaty provides an arbitration mechanism. Presently, the role of the World Bank is limited as provided in Annexues F & G.
