Pakistan brought this arbitration under the Indus Waters Treaty of 1960 over the design of India’s run-of-river hydroelectric plants on the Western Rivers, including the Kishenganga and Ratle projects. India does not recognize the Court of Arbitration and has not appeared. On August 31, 2026, the court held that the treaty remains fully in force despite India’s declared “abeyance,” and it restricted concreting at Ratle pending a Neutral Expert’s decision.
Latest development Aug 31, 2026
On August 31, 2026, the Court of Arbitration unanimously held that the Indus Waters Treaty remains fully in force despite India’s decision to hold it in abeyance. It also barred India from concreting parts of the Ratle plant above set levels until 90 days after the Neutral Expert’s final decision. India rejected the award the same day.
Why it matters
The awards decide whether India may set aside the 1960 treaty on its own and how far the treaty limits the design of Indian hydroelectric plants upstream of Pakistan. India rejects the court’s authority and has not taken part.
Background
The Indus Waters Treaty of 1960 permits India to build run-of-river hydroelectric plants on the Indus, Jhelum, and Chenab Rivers (the Western Rivers). Those rivers then flow into Pakistan, and the treaty limits the plants’ design. In August 2016, Pakistan started this arbitration over the design of components of such plants, including the Kishenganga and Ratle projects. In October 2016, India asked for a Neutral Expert on questions specific to those two projects. The World Bank paused both appointments in December 2016 and lifted the pause in 2022.
The Court of Arbitration rejected India’s objections to its competence on July 6, 2023. In April 2025, armed individuals carried out an attack in India-administered Jammu and Kashmir. On April 23, 2025, India said it would hold the treaty “in abeyance” until Pakistan “credibly and irrevocably abjures its support for cross-border terrorism.” On June 27, 2025, the court held that this decision could not limit its competence. It issued an Award on Issues of General Interpretation on August 8, 2025, and a supplemental award on maximum pondage on May 15, 2026. Pakistan says the pondage award confirms limits on India’s capacity to control the rivers’ flow. India rejected these awards and called the pondage award “null and void.”
India did not attend a hearing in April 2026. On August 31, 2026, the court unanimously held that none of the grounds India had cited could justify suspending or terminating the treaty, which remains fully in force. In a separate order, it barred India from concreting the Ratle dam wall and power intake above set levels. The bar lasts until 90 days after the Neutral Expert’s final decision, expected around July 16, 2027. India’s Ministry of External Affairs called the court “illegally constituted” and said the abeyance remains in force. The Neutral Expert proceedings on the two projects continue.
Timeline 10 events
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OrderCourt limits concreting at the Ratle plant pending the Neutral Expert
The order bars concreting of the dam wall and power intake above set levels until 90 days after the Neutral Expert’s final decision. Two other measures Pakistan sought were refused.
Permanent Court of Arbitration: Press release, August 31, 2026
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AwardCourt holds the Indus Waters Treaty remains fully in force
The unanimous Award on Treaty Status found that no ground India cited, including material breach and changed circumstances, could justify suspension or termination. India rejected it the same day.
Permanent Court of Arbitration: Press release, August 31, 2026Deccan Chronicle (ANI): India rejects Court of Arbitration’s award
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AwardCourt issues supplemental award on maximum pondage
Pakistan said the award confirms limits on India’s water-control capability at the design stage. India called it “null and void.”
Dawn: Pakistan hails PCA’s decisionThePrint: India rejects latest arbitration award
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HearingCourt hears Pakistan on treaty status and interim measures
The three-day hearing at the Peace Palace ended on April 28, 2026. India did not respond to an invitation to take part.
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HearingCourt opens hearing on the second phase of the merits
Pakistan’s Attorney General, Mansoor Usman Awan, appeared as agent. India was not represented.
Permanent Court of Arbitration: Certified transcript, February 2, 2026
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AwardCourt issues its Award on Issues of General Interpretation
The court answered general questions on how the treaty governs Indian plants on the Western Rivers. India rejected the award.
Permanent Court of Arbitration: Press release, August 31, 2026Dawn: Pakistan hails PCA’s decision
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AwardCourt finds India’s abeyance cannot limit its competence
The supplemental award on competence did not decide whether the treaty remained in force.
Permanent Court of Arbitration: Press release, August 31, 2026Global Arbitration Review: Indus Waters Treaty panel confirms competence
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OtherIndia declares the Indus Waters Treaty held in abeyance
India acted after an attack in India-administered Jammu and Kashmir and tied the abeyance to Pakistan ending what India calls support for cross-border terrorism.
Permanent Court of Arbitration: Press release, August 31, 2026ThePrint: India rejects latest arbitration award
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AwardCourt of Arbitration rejects India’s objections to its competence
The court also decided to proceed in phases, starting with general questions of treaty interpretation not before the Neutral Expert.
Permanent Court of Arbitration: Press release, August 31, 2026
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FilingPakistan starts arbitration over India’s Western Rivers hydro plants
Pakistan invoked Article IX and Annexure G of the treaty. India asked for a Neutral Expert in October 2016, and the World Bank paused both processes until 2022.
Permanent Court of Arbitration: Press release, August 31, 2026