Indus Waters Treaty Dispute: Pakistan Embraces PCA Ruling as India Challenges Jurisdiction

Pakistan has expressed approval of a recent decision by the Permanent Court of Arbitration (PCA) regarding the Indus Waters Treaty, which clarifies the design criteria for India's proposed run-of-river hydropower projects on the Chenab, Jhelum, and Indus rivers. Islamabad asserts that this decision supports its interpretation of the treaty. Conversely, India has dismissed the court's jurisdiction, advocating instead for resolving disputes through the treaty's neutral expert mechanism.

According to reports, the PCA has mandated that India must permit the flow of the Western Rivers for Pakistan's utilization, specifically for hydropower generation, in strict compliance with the treaty's provisions. Pakistan's Foreign Office highlighted that India should adhere to the treaty's stipulations rather than "ideal" or "best practices" standards.

India has contended that the World Bank's 2022 decision to simultaneously engage both a neutral expert and the Court of Arbitration was unacceptable, pointing to both practical and legal obstacles. Furthermore, New Delhi has associated the suspension of treaty implementation with Pakistan's lack of credible action against cross-border terrorism, referencing the April 2025 Pahalgam terror attack as a pivotal event.

This ruling emerges in a climate of escalating tensions, including nuclear threats from Pakistan's Army Chief, Gen Asim Munir, who warned of the destruction of Indian infrastructure in reaction to decreased water flows. Additionally, Prime Minister Shehbaz Sharif has emphasized water as vital to Pakistan’s survival and vowed to uphold the nation's treaty rights.

The Indus Waters Treaty, brokered by the World Bank in 1960, grants Pakistan control over the western rivers—Indus, Jhelum, and Chenab—while India has rights to the eastern rivers—Ravi, Beas, and Sutlej. Despite ongoing conflict, the treaty has largely remained intact, although it has been criticized within India for disproportionately favoring Pakistan amid ongoing cross-border terrorism issues.