The Hague – The Permanent Court of Arbitration (PCA) has ruled that India’s unilateral suspension of the Indus Waters Treaty (IWT) and its efforts to limit the court’s jurisdiction are invalid and contrary to international law.
The Permanent Court of Arbitration issued its Supplemental Award regarding the Indus Waters Treaty dispute between Pakistan and India on 27 June 2025.
The court reaffirmed that the treaty, signed in 1960 with World Bank mediation, remains fully binding on both India and Pakistan unless both parties mutually agree to amend or terminate it.
The PCA’s decision comes after India attempted to halt arbitration proceedings regarding its controversial hydroelectric projects on the western rivers, a move Pakistan challenged as a violation of the treaty.
The court clarified that neither party has the authority to stop the arbitration process or suspend the agreement on their own, emphasizing that dispute resolution mechanisms under the IWT are mandatory and cannot be bypassed.
Background and Regional Impact
Tensions over water resources have escalated in recent years, particularly after India’s decision in 2023 to suspend the treaty following a deadly attack in Indian-administered Kashmir, which it blamed on Pakistan. The Indus Waters Treaty, considered a model for transboundary water cooperation, allocates control over the six rivers of the Indus basin between the two countries and has survived multiple wars and crises.
Pakistan welcomed the PCA’s verdict, describing it as a victory for international law and a reaffirmation of the treaty’s significance.
The Pakistani government reiterated its readiness for dialogue with India on all bilateral issues, including water disputes, Kashmir, trade, and counterterrorism.
Prime Minister Shehbaz Sharif’s office stated that the court’s decision strengthens Pakistan’s position and ensures the continued application of the treaty.
International Reactions
The World Bank, which played a key role in brokering the original treaty, has also expressed support for the PCA’s ruling, urging both countries to respect the dispute resolution process and work towards peaceful solutions. International water law experts have hailed the decision as a critical precedent for upholding the sanctity of transboundary water agreements.
What’s Next?
The PCA will continue to hear Pakistan’s objections to India’s Ratle and Kishanganga hydroelectric projects, which Islamabad claims violate the treaty’s provisions on water flow and usage. The court’s latest ruling ensures that the arbitration process will move forward, despite India’s objections.
The Indus Waters Treaty remains one of the world’s most successful water-sharing agreements. The PCA’s verdict is expected to ease tensions and encourage both nations to engage in constructive dialogue to resolve their disputes.