Updated

Pakistani and Indian officials say they will consider resuming direct talks on water sharing after the World Bank halted a process to arbitrate a longstanding dispute over two Indian hydroelectric projects.

Indian Foreign Ministry spokesman Vikas Swarup said Wednesday that his country remains "fully conscious" of its international obligations and is "ready to engage in further consultations."

A Pakistani official, speaking on condition of anonymity because he was not authorized to brief reporters, confirmed that direct negotiations would resume soon, without elaborating.

Officials feared the World Bank process, which would have included both a neutral mediator and a court of arbitration, could produce conflicting rulings, endangering a 1960 water treaty between the nuclear-armed rivals as tensions are already soaring over the disputed Kashmir region.