The Permanent Court of Arbitration (PCA) in The Hague orders India to uphold the Indus Waters Treaty (IWT) with Pakistan and suspend certain construction activities for the Ratle hydro-electric project. The tribunal issues an award on the treaty’s status in relation to India’s earlier decision to put the agreement “in abeyance” and issues interim measures after Pakistan’s request.

Sources say the PCA concludes the IWT “remains fully in force” and that India has no legal basis to suspend or terminate it unilaterally. The court examines grounds India raised, including sovereignty arguments and claims of material breach, fundamental change of circumstances, and the effects of armed conflict, and finds none justify suspending the treaty. It also notes the IWT does not provide for unilateral suspension or “abeyance,” and it declines to grant some of Pakistan’s requested interim measures.

On implementation, sources agree the PCA imposes limited restrictions—prohibiting concreting parts of the Ratle dam wall and power intake above set levels—until after a World Bank-appointed neutral expert issues a final decision expected in July 2027. Pakistan backs the ruling, while India rejects the PCA process and continues to insist the treaty remains suspended. The dispute also continues alongside the neutral expert review covering the Kishenganga and Ratle projects.