The latest ruling of the Permanent Court of Arbitration (PCA) at The Hague has placed the Indus Waters Treaty (IWT) of 1960 at the center of renewed India-Pakistan tensions. On August 31, 2026, the Court of Arbitration issued two important decisions: an Award on the status of the Treaty following India’s April 2025 decision to place it “in abeyance,” and an Order on interim measures concerning the Ratle Hydroelectric Plant on the Chenab River. The significance of the ruling is considerable. The Court unanimously determined that the Indus Waters Treaty remains fully in force and that India remains bound by its obligations under the agreement. It rejected the proposition that India could unilaterally suspend or terminate the Treaty. The Court also held that India must continue to observe the Treaty’s provisions governing hydroelectric projects on the Western Rivers.

This ruling directly challenges New Delhi’s decision of April 23, 2025 to place the Treaty in abeyance following the Pahalgam false flag attack. India subsequently maintained that its decision was justified by national-security considerations. The PCA, however, examined the possible legal grounds for suspension or termination and concluded that none provided a basis for unilateral action. The decision therefore reinforces a fundamental principle of international treaty law: a party cannot simply disregard an international agreement because bilateral relations have deteriorated. India has nevertheless rejected the ruling. Its Ministry of External Affairs described the Court........

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