The Permanent Court of Arbitration in The Hague has ruled that India must adhere to the decades-old Indus Waters Treaty with Pakistan and restrict construction on a hydroelectric project in the Kashmir region. This decision grants a victory to Islamabad, as the court stated that the 1960 treaty remains fully in force, despite India's unilateral decision last year to suspend the agreement.
The arbitration panel's ruling explicitly rejected India's justifications for suspending or terminating the treaty, emphasizing that India remains bound by its obligations under the agreement. These obligations include rules governing the design and operation of hydroelectric projects on rivers primarily allocated to Pakistan. Pakistan's Deputy Prime Minister and Foreign Minister Ishaq Dar welcomed the unanimous ruling, stating on X (formerly Twitter) that it "vindicates Pakistan's consistent position that a binding international treaty cannot be unilaterally suspended or set aside" and that "India must fully comply with its obligations under the Treaty."
The Indus Waters Treaty, brokered by the World Bank, governs the use of six rivers flowing through India and Pakistan. The agreement generally grants India rights over three eastern rivers, while Pakistan retains rights over the western Indus, Jhelum, and Chenab rivers. However, India is permitted to utilize the western rivers for specific purposes, including certain hydroelectric projects. Pakistan's economy and population are heavily reliant on the Indus waters, with over 90% of its crops, including wheat, rice, and cotton, depending on this system. Agriculture accounts for approximately a quarter of Pakistan's Gross Domestic Product. India had suspended the treaty last year following a military conflict and a fatal attack in Indian-administered Kashmir, which New Delhi attributed to Pakistan, an accusation denied by Islamabad.
Legal experts, such as Ahmer Bilal Soofi and Sikander Ahmed Shah, affirm the strength of Pakistan's position due to this ruling. They note that India's non-participation in the hearings does not weaken the outcome, as the court established its jurisdiction and India is a signatory to the treaty. The court also ordered India to limit construction on the Ratle hydroelectric plant, specifically prohibiting work on the dam wall and power intake structure above certain levels, a restriction set to last until 90 days after a World Bank-appointed neutral expert delivers a final decision, expected before July 2027.
