The Hague Arbitration Court Upholds Indus Waters Treaty, Clarifies India’s Obligations on Hydropower Projects

ISLAMABAD, August 31: A significant development has emerged in the longstanding dispute between Pakistan and India over the Indus Waters Treaty (IWT), with the Court of Arbitration in The Hague unanimously ruling that the treaty remains in force and binding on both countries and cannot be unilaterally suspended or terminated by India.

The court rejected India’s attempt to place the Indus Waters Treaty in abeyance and reaffirmed that both parties remain bound by their respective obligations under the agreement. The ruling also upheld the treaty’s provisions governing the design and operation of India’s hydropower projects on the western rivers.

One of the key aspects of the ruling relates to the Ratle Hydroelectric Power Project being constructed on the Chenab River in Indian-administered Jammu and Kashmir. Acting on Pakistan’s request for interim measures, the court directed that certain construction activities at the project be restricted to ensure compliance with the relevant provisions of the Indus Waters Treaty.

The proceedings also covered the Kishanganga Hydroelectric Power Project on the River Jhelum. Pakistan had maintained that India’s hydropower projects on the western rivers must comply with the design and operational requirements stipulated under the Indus Waters Treaty.

The Court of Arbitration reaffirmed the fundamental principle of international law that a state cannot unilaterally suspend or terminate a binding international treaty simply on the basis of sovereignty or a unilateral decision. The court therefore did not accept India’s argument that the prevailing circumstances provided grounds for placing the treaty in abeyance.

The Indus Waters Treaty was signed between Pakistan and India in 1960 with the assistance of the World Bank. Under the agreement, the Indus, Jhelum and Chenab were designated as the western rivers, with Pakistan receiving rights over their waters, while India was permitted limited use of the western rivers, including construction of hydropower projects subject to specific treaty conditions.

India, however, has rejected the ruling and questioned the jurisdiction of the Court of Arbitration. Indian authorities have maintained that the court does not have the authority to issue such directions to India and that New Delhi does not recognise the proceedings.

India announced in April 2025 that it was placing the Indus Waters Treaty in abeyance following the attack in Pahalgam, Indian-administered Jammu and Kashmir. Pakistan rejected the move as unilateral and unacceptable, maintaining that a binding international agreement could not be suspended unilaterally.

Pakistan has welcomed the Court of Arbitration’s unanimous decision. Deputy Prime Minister and Foreign Minister Senator Muhammad Ishaq Dar said the ruling endorsed Pakistan’s longstanding position that no binding international treaty could be unilaterally suspended or terminated.

Ishaq Dar said India was required to fulfil all its obligations under the Indus Waters Treaty and comply with binding decisions arising from the dispute-resolution mechanisms established under the agreement.

He reaffirmed Pakistan’s firm commitment to protecting its rights under the Indus Waters Treaty through all relevant legal and diplomatic means.

The ruling is being viewed as an important legal development in favour of Pakistan’s position on the status of the Indus Waters Treaty. However, India’s refusal to recognise the court’s jurisdiction and its rejection of the ruling could keep the issue at the centre of legal and diplomatic tensions between the two countries.