The Permanent Court of Arbitration in The Hague has ruled that the Indus Waters Treaty between India and Pakistan remains in force and said India must comply with its obligations under the pact, including those governing its hydropower projects on the western rivers.

India, however, has rejected the ruling.

The Ministry of External Affairs called the arbitration body an “illegally constituted” court and said India does not recognise its jurisdiction.


The statement came after the PCA said India must comply with its obligations under the 1960 treaty, including provisions governing the design and operation of hydropower projects on the western rivers.

“India’s decision to hold the Indus Waters Treaty in abeyance remains in force,” the MEA said. The country maintained that the court was constituted by the World Bank in breach of the treaty and that its latest award, like its earlier pronouncements, has no effect on India’s actions.

India’s position is clear and consistent.
The so-called Court of Arbitration was illegally constituted in breach of the Indus Waters Treaty. Its “award” on interim measures and the status of the Treaty has no legal standing. India never recognised this body, never appeared before…

— India in USA (@IndianEmbassyUS) August 31, 2026

The PCA also backed Pakistan’s request to restrict construction of the dam wall and power intake structure at the Ratle project beyond specified levels until 90 days after a neutral expert, appointed by the World Bank, rules on whether the projects comply with the treaty.

The expert is expected to give a decision by July 2027.

India suspended the treaty in April 2025 following the Pahalgam terror attack, in which 26 people were killed. Pakistan has denied involvement in the attack. The move marked a major escalation in tensions over the water-sharing agreement, which has remaned operational through wars and repeated crises since 1960.

First Published: Sept 1, 2026 8:52 AM IST