India rejects arbitration ruling on Indus Waters Treaty as Pakistan welcomes decision

The Permanent Court of Arbitration (PCA) has ruled that India remains bound by the Indus Waters Treaty and must continue to comply with its obligations under the decades-old water-sharing agreement with Pakistan, despite New Delhi's decision last year to place the treaty "in abeyance".

In a decision issued on Monday, the Hague-based tribunal found that the 1960 treaty remains fully in force and that none of the reasons cited by India could justify suspending or terminating it.

The ruling marks a significant development in a dispute that has become increasingly contentious amid deteriorating relations between the nuclear-armed neighbours.

The case centres on Pakistani objections to the design of several Indian hydropower projects on rivers covered by the treaty, particularly the Ratle hydroelectric project in Indian-administered Kashmir.

Alongside its findings on the treaty's status, the PCA ordered interim measures affecting construction of the Ratle dam.

The tribunal ruled that India must refrain from carrying out certain construction activities, including concreting parts of the dam wall and power intake structure above specified levels, until 90 days after a final decision is issued by a neutral expert reviewing whether the project's design complies with treaty requirements.

That final expert determination is expected in 2027.

Pakistan had requested the measures, arguing that continued construction could complicate or undermine the dispute resolution process before questions over the project's compliance had been fully resolved.

Pakistan welcomes decision

Pakistan hailed the ruling as a validation of its longstanding position that the treaty cannot be unilaterally suspended.

Foreign Minister Mohammad Ishaq Dar said the decision confirmed that international agreements remain binding on the parties that sign them.

In a statement posted on X, Dar urged India to fully comply with both the treaty and the decisions handed down by its dispute-resolution mechanisms. He added that Pakistan remained committed to protecting its rights under the agreement.

Islamabad has repeatedly expressed concern about Indian hydropower projects on the Indus system, arguing that they could affect water flows into Pakistan, where the river network supports the vast majority of the country's irrigated agriculture.

India rejects court's authority

India, however, signalled it would not alter its position.

The Indian foreign ministry said the country's decision to place the treaty in abeyance remained unchanged and argued that the arbitration court lacked jurisdiction to rule on India's sovereign decisions.

New Delhi said the tribunal's findings would have no bearing on actions related to projects being pursued by India.

The sharp difference in responses from the two countries highlights the continuing tensions surrounding water management in the Indus basin, one of the world's most important transboundary river systems.

The latest ruling comes against the backdrop of worsening relations between India and Pakistan following a deadly attack in Pahalgam in Indian-administered Kashmir in April last year that killed 26 people.

India blamed Pakistan for the attack and subsequently announced that it was placing the World Bank-brokered treaty in abeyance.

Putting a treaty in abeyance means it is temporarily suspended, inactive or in disuse.

Pakistan denied any involvement and rejected India's accusations. Islamabad also warned that any attempt to interfere with its allocated share of water under the treaty would be viewed as a hostile act.

The fallout contributed to a broader deterioration in relations, culminating in several days of cross-border military clashes before a ceasefire was brokered by U.S. President Donald Trump.

A treaty that has survived decades of conflict

The Indus Waters Treaty, signed in 1960 with World Bank mediation, is widely regarded as one of the world's most durable water-sharing agreements.

Under its terms, control of the eastern rivers of the Indus basin, the Ravi, Beas and Sutlej, was allocated to India, while Pakistan received rights over the western rivers, the Indus, Jhelum and Chenab.

Although India is permitted to build certain hydroelectric projects on rivers flowing into Pakistan, those projects must meet specific technical conditions designed to prevent significant interference with downstream water supplies.

The agreement has survived multiple wars and decades of political hostility between the two countries. However, disagreements over water management and dam construction have repeatedly tested its resilience.

Fresh uncertainty over future of the agreement

The PCA's ruling is likely to strengthen Pakistan's legal position in ongoing disputes over hydropower development, but India's rejection of the decision raises questions about how the judgment will be implemented in practice.

With the Ratle project remaining under scrutiny and broader disagreements over the treaty unresolved, water security is set to remain a sensitive issue in relations between South Asia's two largest rivals.

The dispute underscores the growing strategic significance of shared water resources in a region where political tensions, population growth and climate pressures are increasingly intersecting.

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