Key Points:
- Arbitration concerns India’s run-of-river hydropower projects under the Indus Waters Treaty
- Pakistan seeks clarity on treaty interpretation affecting project design and pondage limits
- India did not participate in the two-day hearing
ISLAMABAD: The Court of Arbitration has concluded a hearing on the technical design of Indian hydropower projects, advancing a longstanding arbitration initiated by Pakistan under the 1960 Indus Waters Treaty.
The hearing, held on 3 February 2026, focused on the interpretation and application of the Indus Waters Treaty to specific design elements of run-of-river hydroelectric projects that India is permitted to construct on the Indus, Jhelum, and Chenab rivers and their tributaries before they enter Pakistan, said a press release issued by the Permanent Court of Arbitration after the hearing.
During the proceedings, the Court addressed the basis on which India must determine the installed capacity and anticipated load of proposed hydroelectric projects under Annexure D, Part 3 of the Treaty, and how these factors are to be incorporated in calculating maximum allowable storage, in line with Procedural Order No. 17 issued on 21 November 2025.
Pakistan was represented by a high-level delegation led by Attorney General Mansoor Usman Awan, along with senior officials, legal counsel, and technical advisers. The delegation included Pakistan’s Commissioner for Indus Waters, diplomatic representatives in the Netherlands, and international legal and technical experts.
India did not respond to the Court’s invitation to participate in the hearing and did not appear during the proceedings.
Last month, Pakistan secured a procedural victory in the Indus Waters Treaty (IWT) arbitration after the Permanent Court of Arbitration (PCA) reaffirmed its jurisdiction, rejected attempts to stall proceedings, and directed New Delhi to comply with treaty obligations.
In April 2025, India unilaterally held the Indus Waters Treaty in abeyance following the Pahalgam incident in Indian Illegally Occupied Jammu and Kashmir in which 26 people were killed.
Pakistan termed any attempt to suspend its water share an “act of war”, noting the Indus Waters Treaty had no provision for unilateral suspension.
A supplemental award by the PCA in June 2025 held that India could not unilaterally hold the treaty in abeyance. India, in response, said it did not recognise the court or its decisions.
Established under the 1899 Hague Convention, the Permanent Court of Arbitration facilitates dispute resolution among states and other entities. It currently administers a wide range of interstate and investment-related arbitration proceedings worldwide.
