The Hague: An international arbitration tribunal in The Hague has ruled that the Indus Waters Treaty between India and Pakistan remains fully in force, rejecting India's decision to place the agreement in abeyance.
The Court of Arbitration, administered by the Permanent Court of Arbitration, also imposed temporary restrictions on construction work at India's Ratle hydroelectric project in Jammu and Kashmir while a separate process examines technical questions concerning the project's compliance with the treaty.
India has rejected the ruling, saying the tribunal was illegally constituted and has no jurisdiction over India's sovereign decisions. India's Ministry of External Affairs said India has never recognised the legal existence of the Court of Arbitration and has not participated in its proceedings.
The ministry also reiterated that India's decision to hold the Indus Waters Treaty in abeyance remains in force.
The tribunal said the treaty does not allow either India or Pakistan to suspend or terminate it unilaterally. It concluded that the reasons put forward by India did not provide a legal basis for suspending or ending the agreement.
The tribunal considered several arguments associated with India's position, including sovereignty, terrorism, changing circumstances, population growth, energy needs, advances in technology, climate change and armed conflict. It found that none of these grounds justified the suspension or termination of the treaty.
The ruling means that, from the tribunal's perspective, India remains bound by its obligations under the agreement, including provisions governing the design and operation of hydroelectric projects on the western rivers.
India, however, has said the tribunal's ruling will have no effect on its actions or projects. This means the decision represents a major legal dispute between the tribunal and the Indian government rather than an immediate change in India's policy.
The tribunal also issued an order on interim measures concerning the Ratle hydroelectric project on the Chenab River. It directed India to limit certain construction work on the dam wall and power intake structure above specified levels while the related technical issues are considered.
The restrictions are temporary and do not amount to a final finding that the Ratle project violates the treaty.
A separate Neutral Expert process is examining technical questions concerning the Ratle and Kishenganga hydroelectric projects. The process was established under the treaty's dispute settlement framework and is separate from the Court of Arbitration proceedings.
A decision by the Neutral Expert is expected in July 2027.
The Indus Waters Treaty was signed by India and Pakistan on 19 September 1960 with the involvement of the World Bank. The agreement governs the use of the Indus river system, which is vital to both countries, particularly Pakistan's agriculture and water supply.
Under the treaty, the Indus, Jhelum and Chenab are allocated primarily for Pakistan's use, while the Ravi, Beas and Sutlej are allocated primarily to India. The agreement also allows each country certain uses of rivers allocated to the other, subject to specific conditions.
The latest dispute follows India's decision in April 2025 to place the treaty in abeyance after an attack in Pahalgam in Jammu and Kashmir killed 26 people.
India accused Pakistan of supporting cross border terrorism and said the treaty would remain in abeyance until Islamabad took action against such support. Pakistan denied involvement in the attack.
The attack led to a sharp deterioration in relations between the two nuclear armed neighbours. India and Pakistan later exchanged military strikes in May 2025 before a ceasefire ended four days of fighting.
The Indus Waters Treaty has survived wars and prolonged periods of tension between the two countries and has remained an important framework for managing their shared river system.
Pakistan welcomed the latest tribunal decision, saying it reaffirmed India's obligations under the treaty and expressing hope that the rulings could help the two countries resume engagement under their legal commitments.
India has taken the opposite position, saying the Court of Arbitration has no authority to rule on India's decisions and that its latest ruling, as well as its previous pronouncements, will have no effect on India's actions.
The latest decision therefore does not resolve the wider dispute between India and Pakistan. Instead, it adds a significant legal ruling to an already strained relationship, while the separate technical process concerning the hydroelectric projects continues.