Indus Water Treaty dispute intensifies after the Permanent Court of Arbitration says India must comply, while New Delhi rejects the ruling.
The Indus Water Treaty remains fully in force and India must continue complying with it, the Permanent Court of Arbitration in The Hague said on Monday.
The court also said India must limit work on a hydroelectric power project in Kashmir while legal and technical questions under the treaty remain unresolved.
The dispute escalated after India suspended the agreement in April following an attack in a tourist area of Kashmir that killed 26 people.
India said two of the three attackers were Pakistani nationals. Pakistan, however, firmly denied any connection to the attack.
The treaty is vital to Pakistan because it helps secure water supplies used by around 80% of the country’s farmland.
Indus Water Treaty Dispute Reaches New Stage
Pakistan also took legal action after India began work last year to increase reservoir capacity at two hydroelectric projects in the Kashmir region.
Despite three wars and several other conflicts between India and Pakistan, the Indus Water Treaty had continued to function since 1960.
The latest dispute is therefore considered one of the most serious challenges to the agreement in decades.
The Permanent Court of Arbitration said India had no legal basis to terminate or suspend the treaty.
It stated that the Indus Water Treaty remained fully in force and that India must comply with all obligations under it.
The court added that those obligations include responsibilities linked to the planning and implementation of hydroelectric projects on the Western Rivers.
India Rejects Arbitration Court Ruling
India has firmly rejected the ruling.
Although India is a member of the Permanent Court of Arbitration framework, New Delhi said it does not recognise the tribunal’s jurisdiction in this dispute.
“This so-called arbitration court has no jurisdiction to pronounce on India’s sovereign decisions,” the Indian Ministry of External Affairs said in a statement.
The ministry further said the court’s pronouncements would have no impact on India’s actions involving present or future projects.
That position places India and Pakistan on sharply different legal tracks over how the treaty should now operate.
World Bank Expert to Review Hydropower Projects
The next major step is expected by July 2027.
The court said an independent expert appointed by the World Bank will assess whether hydroelectric power projects in the Himalayan region comply with the treaty.
The review will focus on whether construction and design work meets the conditions set out under the Indus Water Treaty.
The court also accepted a request from Pakistan concerning the Ratle hydroelectric power plant.
It said India must not construct the dam and water intake structure above specified levels until 90 days after the independent expert issues a decision.
The dispute now moves into a prolonged legal and technical phase, with both governments maintaining opposing positions over the treaty’s interpretation and India’s right to proceed with hydropower development.
The Indus Water Treaty has survived wars and repeated political crises since 1960. However, the current confrontation has raised fresh questions over whether one of South Asia’s most important water-sharing agreements can continue operating under deepening bilateral tensions.
