THE HAGUE/ISLAMABAD, August 31, 2026 — Nazrana Times Ali Imran Chattha

The Permanent Court of Arbitration (PCA) in The Hague has ruled that the Indus Waters Treaty (IWT) between Pakistan and India remains in force, while India has rejected the ruling and maintained that the tribunal does not have jurisdiction over the matter.
The development comes amid continuing tensions between Pakistan and India over the management and use of the Indus river system and disagreements over Indian hydropower projects on rivers covered by the 1960 treaty.

Court Addresses Status of Treaty

The Hague-based arbitration court determined that the Indus Waters Treaty continues to have legal effect and that the agreement does not provide a basis for India to unilaterally suspend its obligations.

The treaty, signed in 1960 with the World Bank’s involvement, establishes a framework for the sharing and use of the waters of the Indus river system. Despite periods of conflict and strained relations between the two countries, the agreement has remained an important mechanism governing their water-related relations.

Under the treaty, the eastern rivers — Ravi, Beas and Sutlej — were allocated primarily for India’s use, while Pakistan was granted rights over the western rivers — Indus, Jhelum and Chenab — subject to specified provisions allowing India certain uses, including hydropower generation.

Ratle Project Construction Restrictions

The arbitration court also addressed Pakistan’s concerns regarding India’s Ratle Hydroelectric Project on the Chenab River.

According to the ruling reported by Reuters, certain construction activities involving the project’s dam wall and power-intake structure are restricted beyond specified levels pending further assessment.

The issue concerns whether the design and operational characteristics of Indian hydropower projects comply with the technical requirements established under the Indus Waters Treaty.

Pakistan has previously raised objections to aspects of the Ratle and Kishenganga projects, arguing that their design and operation should remain within the limits established by the treaty.

India, meanwhile, has maintained its position regarding its rights to develop hydropower projects in accordance with the treaty’s provisions.

Neutral Expert Process

A separate process involving a Neutral Expert appointed through the World Bank is expected to examine technical questions concerning hydropower projects and their compliance with the treaty.

According to the ruling, the Neutral Expert is expected to make relevant determinations by July 2027. Restrictions concerning specified aspects of the Ratle project will remain pending the applicable determination.

The PCA proceedings and the Neutral Expert process represent separate mechanisms under the dispute-resolution framework associated with the Indus Waters Treaty.

India Rejects the Arbitration Ruling

India has rejected the Hague arbitration court’s ruling and continues to dispute the tribunal’s jurisdiction.

India’s Ministry of External Affairs described the Court of Arbitration as “illegally constituted” and said its pronouncements would not affect India’s sovereign decisions or ongoing projects.

New Delhi has also maintained that the Indus Waters Treaty remains in abeyance, a position that differs from the arbitration court’s conclusion that the treaty continues to have legal force.

Pakistan Welcomes Treaty Finding

Pakistan has consistently maintained that the Indus Waters Treaty remains binding and that Indian hydropower projects on the Western Rivers must comply with its provisions.

The latest ruling supports Pakistan’s position on the continuing legal status of the treaty, although the broader dispute over the interpretation, jurisdiction and implementation of its provisions remains unresolved.

Background to the Dispute

Pakistan initiated proceedings concerning Indian hydropower projects, particularly the Kishenganga and Ratle projects, raising questions about their design and operation under the treaty.

The PCA had previously determined that it was competent to hear aspects of the dispute. At the same time, India has challenged the arbitration process and has continued to contest the tribunal’s jurisdiction.

The disagreement has resulted in parallel legal and diplomatic processes involving the PCA, the Neutral Expert mechanism and the governments of both countries.

Significance of the Ruling

The latest development provides a further legal interpretation of the status of the Indus Waters Treaty but does not resolve the wider political and diplomatic disagreement between Pakistan and India.

For Pakistan, the ruling reinforces its position that the treaty continues to apply. For India, its rejection of the tribunal’s jurisdiction means that New Delhi does not accept the ruling as determining its obligations under the agreement.

The Indus river system remains particularly important to both countries, with the rivers supporting agriculture, energy production and broader economic activity across the region.

Key Points

• PCA ruling: The Hague arbitration court says the Indus Waters Treaty remains in force.
• India’s position: India rejects the tribunal’s jurisdiction and the ruling.
• Pakistan’s position: Pakistan maintains that the treaty remains binding and that Indian projects must comply with its provisions.
• Ratle Project: Certain construction activities are restricted pending further assessment.
• Neutral Expert: A World Bank-appointed Neutral Expert is expected to address relevant technical questions by July 2027.
• Overall dispute: The legal and diplomatic disagreement between Pakistan and India remains unresolved.

Report: Ali Imran Chattha
Nazrana Times