Arbitration court says Indus Waters Treaty suspension is illegal

THE HAGUE: The Court of Arbitration on Friday declared that India’s decision to suspended the Indus Waters Treaty was illegal, in a massive blow to Prime Minister Narendra Modi’s government.

The breakthrough comes just days after India said it will never restore the Indus Waters Treaty with Islamabad, and the water flowing to Pakistan will be diverted for internal use.

Pakistan managed this important legal victory with long-term diplomatic and political effects, as the Indus Waters Treaty provides arbitration as mechanism to solve disputes.

“On 27 June 2025, the Court of Arbitration rendered a Supplemental Award on the Competence of the Court (‘Supplemental Award’) in an arbitration initiated by the Islamic Republic of Pakistan (‘Pakistan’) against the Republic of India (‘India’) pursuant to Article IX and Annexure G of the Indus Waters Treaty,” the judgment reads.

About the authority to hear the matter, the judgment said, “In a unanimous decision, which is binding on the Parties and without appeal, the Court found that India’s position on ‘abeyance’ of the Treaty does not limit the competence of the Court over this dispute, which the Court previously affirmed in its Award on Competence of 6 July 2023.”

Moreover, the order reads that “it has a continuing responsibility to advance these proceedings in a timely, efficient, and fair manner, notwithstanding India’s position on ‘abeyance’.”

UNILATERAL ACTION REJECTED

The judgment mentioned the issue in detail and then said, “Applying these findings to India’s decision that the ‘Indus Waters Treaty 1960 will be held in abeyance with immediate effect’, the Court found that it was not open to India to take unilateral action to suspend these proceedings, regardless of how India’s position was characterized or justified under international law.”

“After considering the terms of Indus Waters Treaty”, the judgment says, there is no room for unilateral “abeyance” or “suspension”, and it remain in force “until terminated with the mutual consent of India and Pakistan.”