Pakistan secures PCA ruling on IWT against India

August 12, 2025 (MLN):  Pakistan has secured a major victory at the Permanent Court of Arbitration (PCA), which has issued a binding ruling in its favor on key questions regarding the interpretation of the Indus Waters Treaty (IWT).

The court affirmed that India must allow the waters of the Western Rivers to flow for Pakistan’s unrestricted use, in line with treaty provisions.

The Award, issued on August 8 and made public on Monday, came in a case Pakistan initiated in 2016. It emphasized that court awards and decisions of a Neutral Expert are final and binding on both parties.

In its findings, the PCA held that the treaty’s exceptions including those for hydroelectric power generation must be strictly applied according to IWT provisions, not based on India’s preferred ideal or best practices design standards.

The dispute centered on India’s plans for run-of-river hydroelectric plants on the Indus, Jhelum, and Chenab rivers.

Pakistan claimed the designs violated IWT restrictions. Although India did not participate in the proceedings, it was kept informed and invited to engage at each stage.

The tribunal reaffirmed its jurisdiction despite India’s objections and its April 2025 unilateral decision to hold the IWT in abeyance.

It ruled unanimously that it was properly constituted and competent to decide the disputes raised by Pakistan.

The PCA clarified key IWT provisions, notably Article III and Annexure D, setting limits on low-level outlets, gated spillways, turbine intakes, pondage capacity, and freeboard to safeguard Pakistan’s downstream rights.

It prohibited low-level outlets in dams on Pakistani rivers except where strictly necessary for sediment control or technical reasons, and even then, such outlets must be minimal in size and located as high as possible.

Gated spillways, it added, should be avoided unless absolutely necessary, with preference given to ungated designs.

For pondage the storage of water for power generation the court ruled it must be calculated based on water available over seven days at the minimum mean discharge, factoring in downstream release requirements. Maximum pondage, it said, may not exceed twice that amount.

Freeboard, the court stated, should be limited to what is required for dam safety under recognized international standards.

The Award also urged early-stage cooperation between India and Pakistan during the planning of new hydroelectric plants to address any valid concerns before designs are finalized.

The court emphasized that arbitration awards have a controlling legal effect on all subsequent proceedings, while decisions of a Neutral Expert are final for the specific matter they address.

Experts in Pakistan hailed the decision as a significant diplomatic and legal victory. Former Indus Water Commissioner Jamaat Ali Shah said the ruling affirmed Pakistan’s stance that India cannot unilaterally suspend the treaty or reduce flows into Pakistani rivers through dam construction.

Shah noted that Pakistan had challenged two issues India’s ability to reduce river flows and the design of the Ratle and Kishanganga projects.

The PCA has now ruled in Pakistan’s favor on the first issue, while the second will be addressed after further hearings.

He warned that India’s decision to hold the treaty in abeyance was dangerous and pointed out that even the World Bank had not supported India’s position and also urged Islamabad to initiate a case over India’s refusal to share water data.

Legal expert and former law minister Ahmer Bilal Soofi described the ruling as an endorsement of Pakistan’s position, strengthening its standing internationally.

The PCA stressed that the IWT’s purpose is to maintain balance and prevent unilateral advantages, acknowledging Pakistan’s vulnerability as a downstream riparian.

Proceedings on the specific disputes over the Kishanganga and Ratle projects will continue in the next phase.

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