One of the last stumbling blocks of an agreement was the financing of the construction of canals and storage facilities that would transfer water from western rivers to Pakistan. This transfer was necessary to catch up with the water that Pakistan abandoned by giving up its rights to the eastern rivers. The World Bank originally predicted that India would pay for this work, but India refused.  The Bank responded with an external financing plan. Agreement on the Indus Basin Development Fund (Karachi, September 19, 1960); an agreement between Australia, Canada, West Germany, New Zealand, the United Kingdom, the United States and the International Bank for Reconstruction and Development (IRDC) and Pakistan, which agreed to make a combination of funds and loans available to Pakistan.  This solution eliminated the remaining stumbling blocks of the agreement and inland navigation was signed by both countries on the same day in 1960, retroactively from April 1, 1960, but the provisions of the Indus Basin Development Fund Agreement do not in any way affect inland navigation in accordance with art. XI (3).  Subsidies and loans to Pakistan were renewed in 1964 by a complementary agreement.  This agreement lasted nine years of negotiations and shares control of six rivers between the two nations that were once signed. However, the negotiations quickly came to a standstill and neither side was willing to compromise. In 1951, David Lilienthal, former head of the Tennessee Valley Authority and the U.S. Atomic Energy Commission, visited the area to research articles he was to write for Collier magazine.
He proposed that India and Pakistan move towards an agreement to jointly develop and manage the industrial flow system, possibly with advice and funding from the World Bank. Eugene Black, then president of the World Bank, agreed. On his proposal, engineers from each country formed a working group whose consultants advise World Bank engineers. However, political considerations prevented these technical discussions from reaching an agreement. In 1954, the World Bank presented a proposal for a solution to the impasse. After six years of talks, Indian Prime Minister Jawaharlal Nehru and Pakistani President Mohammad Ayub Khan signed the Indus Waters Treaty in September 1960. Lilienthal`s idea was well received by World Bank officials (then the International Bank for Reconstruction and Development), and then by the Indian and Pakistani authorities.