India must uphold Indus Waters Treaty, court rules. What was Pakistan’s case?

On August 31, 2025, the Permanent Court of Arbitration in The Hague ruled that the Indus Waters Treaty between India and Pakistan remains fully in force. The court rejected Pakistan's claim that India's decision to hold the treaty in abeyance was a suspension or termination of the agreement. The court found that the treaty does not allow either nation to unilaterally end the arrangement or enter a period of suspension.

The ruling specifically addressed India's decision to suspend the treaty on April 23, 2025, following the Pahalgam terror attack. The court clarified that India did not legitimately suspend the treaty by citing sovereignty, Pakistan's alleged breach, terrorism, demographic or climate changes. The treaty continues to bind India to its obligations concerning hydroelectric projects on the Western Rivers.

The court also ruled on the Ratle Hydro-Electric Plant project in Jammu and Kashmir. Pakistan had challenged design aspects of the project, arguing non-compliance with the treaty. A Neutral Expert appointed by the World Bank, as requested by India, had previously halted proceedings due to India's abeyance decision. The court now orders India to temporarily halt construction above certain levels and report any schedule changes.

India rejects the court's jurisdiction, maintaining that the treaty's proceedings are invalid and that the neutral expert process is the appropriate mechanism. Despite the ruling, India remains committed to its treaty obligations and rebuffs Pakistan's attempts to portray the situation as a violation of its national security.