The rivers of the Kashmir region feed into the Indian subcontinent, including the Indus and its tributaries – Jhelum, Chenab, Ravi, Beas, and Sutlej. India and Pakistan are heavily reliant on these rivers for agriculture and hydropower, while China controls key headwaters.
The 1960 Indus Waters Treaty, mediated by the World Bank, has long helped prevent conflict over water. However, following the 2025 Pahalgam terror attack, India’s threat to withdraw from the treaty has heightened tensions. Islamabad views any attempt to block the Indus, Jhelum, or Chenab as an act of war (since these rivers have been allocated to Pakistan via the treaty).
Further complicating matters, the Indus and Sutlej originate in Tibet. Given China’s close ties with Pakistan, Islamabad could urge Beijing to restrict India’s access to these waters, threatening New Delhi.
These water management challenges are illustrative of why Kashmir has remained a complex and stubborn geopolitical flashpoint. Kashmir is also endowed with rich natural resources. It contains vast forests that could yield timber from deodar cedar and pine, as well as medicinal plants that treat a wide range of ailments. Mineral wealth includes bauxite and coal, gypsum, precious stones, graphite, lithium, and magnesite – key materials for the digital age. The region also produces high-value crops such as apples, walnuts, and saffron, while its pristine landscapes hold immense potential for tourism.
These economic benefits remain largely unrealised due to the ongoing territorial dispute.
Kashmir’s mountainous terrain makes it a vital vantage point for surveillance and military exercises, meaning the territory is intertwined with national security for the three countries.