The federal government has welcomed the ruling by the Permanent Court of Arbitration (PCA) in The Hague, which upheld Pakistan’s position on the interpretation of the Indus Waters Treaty. The court ruled that India must generally allow the unrestricted flow of water from the western rivers to Pakistan.
According to details, the PCA released its August 8 decision on its website, stating that the ruling is final and binding on both parties. The decision came in response to arbitration proceedings initiated by Pakistan on August 19, 2016, under Article IX of the treaty. The court clarified that the basic principle under Article 3 is that India must let the waters of the western rivers flow to Pakistan without obstruction, except for certain narrowly defined exceptions, such as limited hydroelectric power generation. Any such projects must comply strictly with treaty provisions, not with India’s preferred “ideal” or “best” designs.
#PCA Press Release | The Indus Waters Western Rivers Arbitration (Islamic Republic of Pakistan v. Republic of India)
— Permanent Court of Arbitration (@PCA_CPA) August 11, 2025
The ruling also addressed the balance of rights and obligations between the two countries, emphasizing that disputes should be resolved through the treaty’s notification, objection, and settlement procedures to promote cooperation. While India boycotted the proceedings and questioned the court’s jurisdiction, the PCA ensured India was kept fully informed and given opportunities to participate. The court reviewed historical records, correspondence between the parties, and past submissions by India to understand its position.
The PCA confirmed that its decision covers the overall interpretation and application of the treaty, including Article 3 and provisions related to new run-of-the-river hydroelectric plants on the western rivers. The court also reaffirmed that its rulings are final, binding, and not subject to appeal.
In response, Pakistan’s Foreign Office said the decision carries particular importance at a time when India has announced the suspension of the Indus Waters Treaty and boycotted arbitration. Calling the ruling a validation of Pakistan’s longstanding position, the FO expressed hope that India will now restore normal treaty procedures and fully comply with the PCA’s decision in good faith.