Extended negotiations between India and Pakistan over the disputed Baglihar dam broke down on Friday without an agreement.
Pakistan wanted India to stop work on the 450MW project, claiming it would affect the flow of water into its territory and breach the stipulations of the World Bank brokered Indus Basins Water Treaty (1960). India countered by insisting that the dam was within the terms of the treaty.
The talks were originally scheduled to finish on 6 January but were extended by an extra day.
According to the Pakistan Times, Minister for Water and Power Liquant Ali Khan Jatoi said on Saturday that since the talks had produced a stalemate, Pakistan would now seek appropriate neutral third-party intervention. It is likely that they will approach the World Bank, in accordance with the terms of the Indus treaty.