Pakistan and India have agreed on redesigning the Miyar Hydroelectric project during round-table talks in Islamabad over water disputes between the two nuclear-armed neighbours.

A meeting of the Indus commission held discussions on India’s Miyar, Lower Kalnai and Pakal Dul hydropower projects as well as on matters pertaining to exchange of data and conducting tours and meetings of the commission.

Indian experts said they have agreed to re-consider Pakistan’s observations on these projects and will respond in the next meeting of the commission.

The Indian side has also agreed to a tour of inspection for Pakistan’s Indus Commission which is expected to be arranged before August 2017, read a statement.

Both sides signed the Indus Water Treaty in 1960, brokered by the World Bank, to share the vast water resources from the Indus River system, which supplies water to both countries. The treaty requires annual meetings but none have been held since May 2015 because of tense relations between New Delhi and Islamabad.

Pakistan, with a largely agriculture-based economy, fears the projects could severely deplete its water resources. Many worry the dispute could further escalate tensions between the nuclear-armed rivals.

Pakistan last September asked the World Bank to mediate, but the organisation later backed out, forcing Pakistan and India to resume direct negotiations.