Tribunal says India cannot withdraw from water treaty with Pakistan
India must halt work on two hydroelectric projects in Kashmir and keep the 1960 Indus Waters Treaty fully in force after a Hague tribunal rejected New Delhi’s bid to suspend the pact.
Source: Channel NewsAsia · August 31, 2026 at 6:31 PM · AI-assisted report
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THE HAGUE, KASHMIR, PAKISTAN, INDIA, ISLAMABAD, NEW DELHI, 1 SEPTEMBER 2026 —
India must halt work on two hydroelectric projects in Kashmir and keep the 1960 Indus Waters Treaty fully in force after a Hague tribunal rejected New Delhi’s bid to suspend the pact.
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The Permanent Court of Arbitration said on Monday that India had no legal grounds to withdraw from the treaty, which governs water use from six Himalayan rivers that flow into Pakistan. A neutral expert, appointed by the World Bank, will rule by July 2027 on whether the projects comply with the agreement.
India’s foreign ministry responded by reiterating its suspension of the treaty, calling the ruling “illegally constituted” and vowing to continue its policy. Pakistan welcomed the decision and said interim measures required India to pause work on a dam wall and submit monthly construction updates until the expert’s verdict next year.
The treaty has governed water sharing between the nuclear-armed neighbours since 1960, even as tensions flared over Kashmir. In May 2025, New Delhi suspended cooperation after accusing Islamabad of backing an attack on Indian tourists in Kashmir. Pakistan denied the charge.
Analysts warn that water disputes risk escalating as climate change and population growth strain resources in both agricultural economies. The Indus basin supplies irrigation and drinking water to roughly 300 million people across both countries.
Pakistan’s Deputy Prime Minister Ishaq Dar said the tribunal’s decision “vindicates Pakistan’s consistent position that a binding international treaty cannot be unilaterally suspended.” India’s Water Minister C.R. Patil has pledged to ensure “not a single drop of water” reaches Pakistan, which has called any diversion an “act of war.”
The court found unanimously that none of India’s arguments for suspending the treaty held merit. It ordered New Delhi to comply with treaty obligations on the design and operation of hydroelectric projects on the Western Rivers, pending the expert’s ruling.
For Malaysian companies with South Asian operations, the ruling shows how cross-border legal disputes can disrupt infrastructure projects and supply chains, even in unrelated sectors.
Related: Permanent Court of Arbitration · Ishaq Dar