Pakistan has unveiled counter-measures against India following New Delhi’s decision to suspend the World Bank-mediated Indus Water Treaty.

New Delhi’s decision to put in abeyance the 1960 agreement was one of several measures it took against Islamabad after India — without providing any evidence — accused Pakistan of supporting "cross-border terrorism" following a deadly attack on tourists in Indian-administered Kashmir that left 26 people dead.

Islamabad labelled it a "false flag" operation and announced retaliatory measures on Thursday, including downgrading ties with New Delhi and suspending the Simla Agreement.

What is the Simla Agreement?

The agreement, signed on July 2, 1972, promotes bilateral dispute resolution and respect for the Line of Control [LoC], the de facto border dividing Kashmir between Pakistan and India since 1947.

Before the agreement, both sides called it the Ceasefire Line.

The Agreement was signed in Simla by Indian Prime Minister Indira Gandhi and Pakistan's President Zulfikar Ali Bhutto after the 1971 India-Pakistan War, which involved India's military intervention in East Pakistan that created what is called Bangladesh today.

Regarding Kashmir, it asserts that the core issues causing conflict over the past 25 years will be resolved peacefully.

"That the two countries are resolved to settle their differences by peaceful means through bilateral negotiations or by any other peaceful means mutually agreed upon between them. Pending the final settlement of any of the problems between the two countries, neither side shall unilaterally alter the situation and both shall prevent the organization, assistance or encouragement of any acts detrimental to the maintenance of peace and harmonious relations."

Here is the full copy of the agreement.

Is the Simla Agreement a Peace Treaty?

No.

A peace treaty is a formal, binding agreement ending war between nations. A peace agreement may be less formal or binding.

India and Pakistan are technically at war, primarily over Kashmir. With about a million soldiers deployed on both sides of the LoC, it is the world's most militarised region.

A peace treaty, governed by international law, requires ratification to become legally enforceable.

A peace agreement can be temporary, non-binding, or even a verbal commitment without legal weight.

India and Pakistan have long accused each other of breaching the Simla Agreement.

Pakistan says India's unilateral actions in occupying the Siachen Glacier in 1984 and the 2019 Kashmir annexation breached the agreement.

India accuses Pakistan of violating the agreement by backing the popular anti-New Delhi revolt in Kashmir since 1989 and during the 1999 Kargil War.

For the US, it may have extended peace, but it remains an ineffective agreement.

"It is a simple fact that the Simla Agreement has not been very effective up to this point … it’s fine to discuss the Kashmir dispute under the Simla accord, but it needs to happen and it hasn’t thus far. Therefore ... it has not been very effective," the then US Assistant Secretary of State Robin Raphel noted on October 28, 1993.

What is the current status of the Simla Agreement?

India has not yet reacted to Pakistan’s retaliatory measures. So, for India, the agreement holds.

But for Pakistan, India undermined it completely in 2019 when it unilaterally revoked Article 370 of its own constitution, annexing the region and ruling it directly from New Delhi.

Pakistan says India's policy allowing non-Kashmiri Indian settlers to buy properties in disputed Kashmir aims to change the region's Muslim-majority demography, violating the Simla Agreement, a view supported by legal experts like A.G. Noorani.

What does the suspension of the Simla Agreement mean?

The agreement encouraged resolving disputes, particularly over Kashmir, through bilateral talks, but did not make it binding.

Pakistan's suspension suggests a shift towards internationalising the Kashmir issue, potentially seeking mediation from the UN, China, or the Organisation of Islamic Cooperation (OIC). The UN has passed several resolutions advocating for a plebiscite in Kashmir. And, historically, the Muslim world has predominantly supported Pakistan on this matter.

India, however, consistently cites the Simla Agreement and regards the Kashmir dispute as a bilateral issue with Pakistan.

India may now face diplomatic challenges if Pakistan pushes for global involvement over Kashmir.

Though there is a fragile ceasefire underway on the Line of Control, the suspension of the agreement also means heightened tensions or the possibility of renewed fighting between the militaries of nuclear-armed rivals.