The study evaluates statistical downscaling model (SDSM) developed by annual and monthly sub-models for downscaling maximum temperature, minimum temperature, and precipitation, and assesses future changes in climate in the Jhelum River basin, Pakistan and India. Additionally, bias correction is applied on downscaled climate variables. The mean explained variances of 66, 76, and 11 % for max temperature, min temperature, and precipitation, respectively, are obtained during calibration of SDSM with NCEP predictors, which are selected through a quantitative procedure. During validation, average R 2 values by the annual sub-model (SDSM-A)—followed by bias correction using NCEP, H3A2, and H3B2—lie between 98.4 and 99.1 % for both max and min temperature, and 77 to 85 % for precipitation. As for the monthly sub-model (SDSM-M), followed by bias correction, average R 2 values lie between 98.5 and 99.5 % for both max and min temperature and 75 to 83 % for precipitation. These results indicate a good applicability of SDSM-A and SDSM-M for downscaling max temperature, min temperature, and precipitation under H3A2 and H3B2 scenarios for future periods of the 2020s, 2050s, and 2080s in this basin. Both sub-models show a mean annual increase in max temperature, min temperature, and precipitation. Under H3A2, and according to both sub-models, changes in max temperature, min temperature, and precipitation are projected as 0.91–3.15 °C, 0.93–2.63 °C, and 6–12 %, and under H3B2, the values of change are 0.69–1.92 °C, 0.56–1.63 °C, and 8–14 % in 2020s, 2050s, and 2080s. These results show that the climate of the basin will be warmer and wetter relative to the baseline period. SDSM-A, most of the time, projects higher changes in climate than SDSM-M. It can also be concluded that although SDSM-A performed well in predicting mean annual values, it cannot be used with regard to monthly and seasonal variations, especially in the case of precipitation unless correction is applied.