Context
The Permanent Court of Arbitration (PCA) at The Hague ruled that the Indus Waters Treaty (IWT), 1960 remains in force despite India placing it “in abeyance” after the Pahalgam terror attack of April 2025. India rejected the ruling, maintaining that the arbitral body lacks jurisdiction and that its decision to keep the treaty in abeyance remains unchanged.
Explanation
- The Indus Waters Treaty (1960) was signed between India and Pakistan, with the World Bank as a signatory to facilitate the agreement.
- It allocates the Eastern Rivers—Ravi, Beas and Sutlej—primarily to India, while the Western Rivers—Indus, Jhelum and Chenab—are largely allocated to Pakistan, subject to specified Indian uses.
- India can use Western River waters for permitted purposes, including domestic use, irrigation and hydroelectric power generation, subject to treaty conditions.
- The treaty provides a graded dispute-resolution mechanism: Permanent Indus Commission → Neutral Expert → Court of Arbitration, depending on the nature of the dispute.
- India and Pakistan have differed over the design of Indian hydropower projects, including the Ratle Hydroelectric Project on the Chenab.
- India objects to the parallel arbitration process and does not recognise the present Court of Arbitration proceedings.
- PCA provides administrative support for international arbitration and is distinct from the International Court of Justice (ICJ).
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