As tensions flare over the reduced flow of the Chenab River, broader regional infrastructure projects involving India and Pakistan face potential delays or collapse. Several cross-border initiatives — including water conservation pilots, grid interconnectivity discussions, and trade corridor feasibility studies — are now reportedly on hold due to the diplomatic fallout.
Sources within South Asian regional bodies, including the South Asian Association for Regional Cooperation (SAARC), suggest that ongoing technical collaboration between India and Pakistan has “completely frozen” in recent weeks. A key casualty could be a proposed cross-border groundwater recharge project, which was under review to combat the effects of droughts in Punjab on both sides.
Pakistan’s Ministry of Water Resources has issued a moratorium on joint development proposals until the Chenab issue is resolved. Similarly, Indian ministries have withdrawn staff from committees handling South Asia-wide water resource studies, citing “national interest and security priorities.”
Analysts say the stalling of technical cooperation over water could have a ripple effect on other critical sectors, including climate adaptation, flood warning systems, and even pandemic response strategies. “Water is the foundation of regional cooperation,” says Dr. Mahira Singh, a hydropolitics expert based in Delhi. “If you lose that, you lose everything else that builds on trust and mutual benefit.”
Infrastructure and development investors are also taking note. Funding agencies like the Asian Development Bank and World Bank have expressed concern that instability over water sharing may make the region less attractive for sustainable development funding.
In the past, shared development interests helped temper hostility. But the Chenab dispute reveals how fragile that balance is. If trust isn’t restored quickly, even apolitical infrastructure projects could become collateral damage in a worsening geopolitical standoff.
