Okay, based on the whole atmosphere in the Indian defence apparatus and the government, the all-party meeting, HM briefing the President, the urgency with regards to IWT, cancelling the ceasefire agreement, the IAF exercise, the IN Vikrant carrier group in the Arabian Sea, Modi's remarks, I am going to try and predict impending events. @Mods, feel free to delete if it is inappropriate. And to give an objective measure of how much trust I have in my predictions, if I were a betting man, I'd accept 1 to 3 odds on them at best.
1. India escalates cross-border shelling with Pakistan and carries out Balakot-style air strikes, possibly coupled with Uri-style ground ops, but both in much larger strike packages. Only hits terrorist installations, initially avoiding engagement with the Pakistani military as much as possible.
2. While the offensive-defense style kinetic action is happening, India starts to block and divert the water flow. It has been established that, as of now, we lack long-term diversion and storage capabilities, but again, it isn't meant to be long-term anyway, and India has sufficient diversion and storage capacity at our disposal at the moment to significantly starve Pakistan of water for a couple of weeks.
3. Simultaneously, the INS Vikrant carrier group is also stationed close to but not in a blockade of Karachi. This is meant to act as a deterrent to any Pakistani misadventure and also allow for an instant blockade of Pakistan's lifeline in case of a full-fledged war.
4. Non-state actors in troubled regions of Pakistan take the opportunity to further put pressure on the Pakistani defence apparatus. India also holds the Taliban option to push Pakistan into a 2 front war if need arises.
After this, it's anyone's bet. Knowing Pakistan, starved of water, and having probably enough money to sustain war for a couple of weeks at max, the best it can do are some sorry ass scirmishes if Asim Munir chooses to be sensible. If not, it'll be an annihilation of Pakistan because no country in the world, not even China, will fund Pakistan's war effort. And let's be honest, Pakistan lacks the balls to go nuclear.
Therefore, Pakistan will either be forced to quietly witness the annihilation of part of its proxy apparatus and be dried out slowly and systematically over time, if it chooses to continue funding and rebuilding what will be left of the proxies, or face complete annihilation in a war with India in today's geopolitical climate.