An international arbitration court based in The Hague has issued an important decision directing India to immediately suspend work on disputed hydropower projects.
The court also ordered India to make sure that it follows its responsibilities under the Indus Waters Treaty.
The decision stressed the importance of the Indus Waters Treaty in managing the distribution of water between Pakistan and India.
Arbitration court’s orders to India
India must limit work on a hydroelectric plant in Indian Illegally Occupied Kashmir (IIOJK) and follow the water-sharing treaty with Pakistan, the Permanent Court of Arbitration (PCA) said.
The Hague-based court said the IWT between Pakistan and India is still fully in force. It said India had no valid reason to end or suspend the agreement.
The court said a neutral expert appointed by the World Bank will decide by July 2027 whether the construction of hydroelectric plants in the Himalayan region follows the treaty.
The Indian foreign ministry rejected the court’s ruling. It said India does not accept the PCA order to follow the water-sharing treaty with Pakistan.
The ministry said India’s decision from 2025 to keep the IWT on hold remains in force.
In May, the PCA in The Hague upheld its earlier decision in support of the continued validity of the IWT. It ruled that India cannot suspend the agreement on its own.
India and Pakistan have managed the Indus River system under the Indus Waters Treaty for more than six decades. The treaty was signed on September 19, 1960. India suspended the treaty last year in April after the Pahalgam attack.
Pakistan has repeatedly warned India about the consequences for regional peace and security if it tries to stop Pakistan from receiving the water given to it under the IWT.
What is the Indus Waters Treaty?
The Indus Waters Treaty is an important agreement between Pakistan and India. It sets rules for the sharing of river waters between the two countries.
The treaty was signed to manage the use and distribution of water from the Indus River system.