In its ruling, the Hague-based court said the treaty remained fully in force and that India must fulfil its obligations, including those related to the design and operation of hydroelectric projects on the western rivers.
The court also imposed interim restrictions on construction at the Ratle Hydroelectric Plant in Indian Illegally Occupied Jammu and Kashmir. India has been barred from concreting the dam wall and power intake structure above specified levels until 90 days after a neutral expert delivers a final decision, expected by July 2027.
The ruling came after India placed the treaty in abeyance following the killing of 26 people in Indian Illegally Occupied Jammu and Kashmir in April 2025. India accused Pakistan of involvement in the attack, an allegation Islamabad rejected.
The arbitration panel examined India's decision and unanimously concluded that none of the grounds cited by New Delhi could legally justify suspending or terminating the treaty.
Pakistan had sought interim measures regarding the Ratle project while separate proceedings continue before a neutral expert appointed by the World Bank. The expert is examining whether the designs of the Ratle and Kishenganga hydroelectric projects comply with the provisions of the treaty.
Pakistan initiated arbitration proceedings in August 2016. The case concerns certain design features of India's run-of-river hydroelectric projects on the Indus, Jhelum and Chenab river systems and their tributaries.
The Pakistani government welcomed the court's decision, saying it would carefully review the Award and Decision and consider how they could help restore engagement between the two countries under the treaty while ensuring that both sides fulfil their binding legal obligations.
India, however, categorically rejected the ruling of the Permanent Court of Arbitration.
