Pakistan President Asif Zardari says relations with India could be harmed over a water sharing dispute in the disputed Kashmir region.
India inaugurated the controversial Baglihar hydro-electric dam project in Indian-administered Kashmir on Friday.
Pakistan has said the dam would deprive its agricultural regions of irrigation.
India says the project is crucial for meeting its power needs. In May 2005, the World Bank appointed an arbitrator to settle the dispute.
The committee report was never made public, but both India and Pakistan said it backed their stand.
"Pakistan would be paying a very high price for India's move to block Pakistan's water supply from the Chenab river," Pakistan's official news agency Associated Press of Pakistan (APP) quoted President Zardari as saying on Sunday night.
"Indian Prime Minister Manmohan Singh had assured me in our meeting in New York that his country is seriously committed to our water sharing treaty," he said.
Mr Zardari had met Mr Singh on the sidelines of the UN General Assembly in September.
"We expect him to stand by his commitment," he said.
Mr Zardari warned that any violation of the 1960 Indus Water Treaty by India "would damage the bilateral ties the two countries had built over the years".
Mr Singh inaugurated the first phase of the dam on Friday despite protests from Pakistan.
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"Indian Prime Minister Manmohan Singh had assured me in our meeting in New York that his country is seriously committed to our water sharing treaty," he said.
Mr Zardari had met Mr Singh on the sidelines of the UN General Assembly in September.
"We expect him to stand by his commitment," he said.
Mr Zardari warned that any violation of the 1960 Indus Water Treaty by India "would damage the bilateral ties the two countries had built over the years".
Mr Singh inaugurated the first phase of the dam on Friday despite protests from Pakistan.">
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