Two boys sit on the banks of the Jhelum River in Sopore, Jammu and Kashmir, India, on May 7, 2026. The Jhelum River flows through India and Pakistan under the framework of the Indus Water Treaty, and recent tensions and border disputes have brought renewed attention to its water-sharing provisions.
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India’s government has firmly rejected an arbitration award that would have forced it to abide by a decades-old water-sharing agreement with Pakistan and limit the construction of hydropower projects in the disputed Kashmir region.
The Permanent Court of Arbitration (PCA) in The Hague on Monday ruled in Pakistan’s favor on the 1960 Indus Water Treaty, saying the historic agreement remains fully binding and India has no legitimate reason to terminate or suspend it.
India moved to “suspend” the agreement last year, but said its decision remained in effect.
“This so-called arbitral tribunal has no power to pronounce on India’s sovereign decisions,” India’s Ministry of External Affairs said in a statement on Monday.
“That statement has no impact now or in the future on India’s actions in relation to projects it is undertaking,” it added.
The PCA also ordered India to restrict construction of the Rattle hydropower plant in Kashmir and prohibit construction of dam walls and power intake structures above a certain level. The ruling will apply until 90 days after a World Bank-appointed neutral expert issues a final decision, which is expected to be made by July 2027.
The arbitration ruling adds new stress to the long-simmering water dispute between the nuclear-armed neighbors.
The Indus Water Treaty, brokered by the World Bank, governs the use of rivers in the Indus Basin, which spans India, Pakistan, Afghanistan and China. Under the agreement, India will have unrestricted access to rivers in the eastern part of the basin, while Pakistan will receive rights to rivers in the western part.
The treaty has withstood three wars and long diplomatic tensions, but tensions have escalated in recent years.
water security
India moved to suspend the treaty in April last year following militant attacks in Kashmir, with Delhi blaming Pakistan and Islamabad denying any involvement.
Pakistan’s Foreign Minister Ishaq Dar said via social media that Islamabad welcomes the PCA court’s judgment.
“This award attests to Pakistan’s consistent position that binding international treaties cannot be unilaterally suspended or abrogated. India must fully comply with its obligations under the treaties and the binding decisions of the dispute resolution mechanism,” Dar said on Monday.
View of Baglihal Dam (also known as Baglihal Hydroelectric Project) on the Chenab River flowing from Kashmir, India to Pakistan, May 6, 2025. It is located in Chanderkot in Jammu region.
Stringer | Reuters
As a downstream country, Pakistan is highly dependent on the Indus Water Treaty, and tens of millions of people depend on the river’s water for their livelihood and survival.
The Indus River Basin supplies about 80% of Pakistan’s irrigated agriculture, and the sector employs 65% of the workforce and accounts for about 25% of Pakistan’s gross domestic product, according to data compiled by Chatham House.
