Muddied Legal Waters of the Indus Waters Treaty

The decades-old Indus Waters Treaty between India and Pakistan has entered a fresh legal and diplomatic dispute after an international arbitration tribunal ruled that the agreement remains in force, despite India's decision to place it in abeyance. The ruling, issued by the Court of Arbitration at The Hague on August 31, has been rejected by India, which has questioned the tribunal's jurisdiction and maintained that the proceedings have no legal standing from New Delhi's perspective. Pakistan, meanwhile, has welcomed the decision and argued that the treaty continues to govern water-sharing arrangements between the two countries.

The latest disagreement centres on the Kishenganga and Ratle hydroelectric projects in Jammu and Kashmir. Pakistan has raised objections over aspects of the projects, arguing that their design and operation could affect flows into Pakistan. India has maintained that the projects are permitted under the treaty and has defended its right to develop hydropower on the western rivers within the agreement's provisions.

Signed in 1960 with the involvement of the World Bank, the Indus Waters Treaty divided the six major rivers of the Indus basin between the two countries. India received the primary rights over the eastern rivers — Ravi, Beas and Sutlej — while Pakistan received the western rivers — Indus, Jhelum and Chenab. India was nevertheless allowed certain uses of the western rivers, including hydroelectric generation, subject to technical conditions.

The agreement remained in operation despite wars and repeated diplomatic crises between India and Pakistan. Disputes over hydroelectric projects, however, have repeatedly tested the treaty's interpretation. The current legal battle became particularly complicated because India and Pakistan have pursued different mechanisms for resolving their disagreements. Pakistan supported arbitration through a Court of Arbitration, while India has backed the use of a Neutral Expert process. The existence of parallel proceedings has been a major source of disagreement between the two sides.

The situation changed dramatically in 2025 after India announced that it was placing the Indus Waters Treaty in abeyance following the Pahalgam terror attack. New Delhi linked the decision to its wider security concerns and called for action against cross-border terrorism. Pakistan rejected India's position and continued to maintain that the treaty remained legally binding.

The recent Hague ruling has therefore failed to resolve the central disagreement. Instead, it has highlighted a deeper question over whether an international tribunal can make decisions concerning the treaty when one of the parties does not recognize its jurisdiction. India has said it does not accept the tribunal's authority, while Pakistan continues to rely on the treaty and international dispute-resolution mechanisms. This leaves the two countries with sharply conflicting positions on both the substance of the water dispute and the legal process being used to address it.

The dispute carries significant importance for both sides. Pakistan depends heavily on the Indus river system for agriculture, drinking water and its wider economy. India, meanwhile, has strategic and economic interests in expanding hydropower generation in Jammu and Kashmir and has increasingly emphasized the need for greater control over its water resources.

The continuing disagreement also comes at a time when India-Pakistan relations remain deeply strained. As a result, what began as a technical dispute over the design of hydroelectric projects has evolved into a broader confrontation involving water security, national sovereignty, international law and bilateral relations. The future of the Indus Waters Treaty now remains uncertain. Unless the two countries find a mutually acceptable way to address their differences, the legal dispute surrounding the treaty could continue to complicate one of the most important and sensitive aspects of India-Pakistan relations.

Disclaimer: This image is taken from Hindustan Times.