ISLAMABAD: The Permanent Court of Arbitration (PCA) on Monday ordered India to uphold the Indus Waters Treaty (IWT) with Pakistan and suspend work on a hydro project in occupied Kashmir.
Water and the IWT remain a contentious issue between India and Pakistan, following New Delhi’s unilateral abeyance of the accord in April last year — a move that was followed by a brief military conflict between the two sides in May 2025.
Following India’s move, Pakistan termed any attempt to suspend its water share an “act of war”, noting the IWT had no provision for unilateral suspension. It later argued that Delhi’s action was a violation of the 1969 Vienna Convention on the Law of Treaties.
In its order, the PCA backed Pakistan’s stance, declaring that the IWT between the two countries remained fully in force, as India had no justification for ending or suspending the agreement.
The Hague-based court issued an award on the status of the IWT “in respect of India’s decision on abeyance” and an order on Pakistan’s application dated March 4 regarding “interim measures” concerning the Ratle hydro-electric plant.
In a press release detailing its ruling, the PCA said it “examined the potential grounds upon which India could suspend or terminate the treaty, including the grounds cited by India in its public statements”.
“In a unanimous decision, the court found that none of these grounds could justify suspension or termination of the treaty.”
It declared that the IWT “remains fully in force, and India must observe its obligations under the treaty, including those relating to the design and operation of its hydro-electric projects on the Western Rivers”.
The IWT allocates the eastern rivers — Ravi, Beas and Sutlej — to India, while the western rivers — Indus, Jhelum and Chenab — are largely allocated to Pakistan. The 1960 water-sharing agreement has also established mechanisms for data-sharing and dispute resolution.
During the proceedings, Pakistan requested the court to address the “design of certain components of the run-of-river hydro-electric projects that India is permitted by the IWT to construct on the Indus, Jhelum, and Chenab rivers and their tributaries (“western rivers”), before those rivers flow into Pakistan”, the PCA statement said.
The proceedings in the interim measures’ application concerned India’s Kishenganga Hydro-Electric Plant (KHEP) and the Ratle Hydro-Electric Plant (RHEP).
The court noted that the Kishenganga and Ratle plants were “also the subject of proceedings” before a World Bank-appointed neutral expert, who is expected to issue a final decision in July 2027 on whether they were in line with the IWT.
In its order, the PCA unanimously decided to “impose measures prohibiting India from concreting the RHEP dam wall and power intake structure above certain levels until 90 days after the neutral expert’s final decision”.
The court also imposed a reporting measure related to the RHEP Construction Schedule until shortly after the neutral expert’s final decision. It declined to grant two other measures requested by Pakistan.
The PCA noted that the IWT “does not provide for one party to terminate or suspend the operation of the treaty, or for ‘abeyance’”. The IWT provides that it will remain in force unless modified or terminated by India and Pakistan acting together through adoption of a further treaty.
The Court of Arbitration was chaired by Professor Sean D. Murphy of the United States. The other members were Professor Wouter Buytaert of Belgium, Professor Jeffrey P. Minear of the United States, Judge Awn Shawkat Al-Khasawneh of Jordan, and Dr Donald Blackmore of Australia.
