IN view of the strategic importance of Pakistan and Afghanistan, problems faced by the two countries will directly affect the whole South Asian region. The Kabul River, a major tributary, is the bone of contention between the two countries. Pakistan-Afghanistan water dispute is shaped by numerous causes, and the absence of a bilateral treaty is one significant cause. A formalised bilateral treaty would have stopped any disruption between the two countries over the flow of water. For instance, had there not been Afghanistan administration’s refusal to attend a conference supported by the World Bank in 2006, there would have been a better atmosphere today. The treaty of Kabul, signed in 1921 between Afghanistan and British India allowed British officers and tribespeople on the British side of the border — now Pakistan — to use water from the river for irrigation purposes. After bilateral relations deteriorated, Afghanistan claimed that Pakistan was not a successor state of the British, and that it was rather a new state carved out of British India, and, as such, it did not enjoy the same rights. This is the foundation of the claim over Kabul River which is the root cause of the dispute. The Afghanistan government supported movements inside Pakistan. To make matters worse, Afghanistan is planning multiple dams across the river to generate 1,177MW of power. In doing so, it clearly has Indian support. The dams are projected to have a storage of 4.7 million acre feet (MAF) of water for Afghanistan, which will hit hard Pakistan’s Khyber Pakhtunkhwa (KP) province, estimated at 16-17 per cent drop in water flow after the completion of Shahtoot Dam. Furthermore, for Pakistan, the very presence of India in Afghanistan in any form poses a threat to national security. While keeping their long history of hostile relations in view, Pakistan and India are protecting their national interests in Afghanistan. Similarly, the infrastructure on both sides has failed to maintain and use water in the right way, which is alarming. Outdated and traditional systems of agriculture continue to overuse water. Such core problems are now leading to actions and policies against each other. One of these manifestations is the exch-ange of harsh official statements that show the historical grievances and hatred against each other. The dispute over Kabul River affects both countries economically. When the water flow is affected, it damages crops, and consequently the economy at large. To address the dispute, both Pakistan and Afghanistan must engage in a way where they both mutually benefit each other. They should approach the World Bank for facilitating some sort of a bilateral treaty. It would help both the countries in striking a win-win solution to the issue.