The Indus Waters Treaty has lasted since 1960. In April 2025 India said it would hold the treaty in abeyance. On 31 August 2026 a Court of Arbitration said the treaty remains fully in force, and India rejected that ruling. This lesson covers the treaty, its dispute ladder and the case, as of 9 October 2026.
At a glance
Four key facts on this topic
Contents
Must Know · The treaty
How was the treaty born?
1.1 Who signed the Indus Waters Treaty, and when?
The treaty text says it was done in English at Karachi on the nineteenth day of September 1960. It takes effect from 1 April 1960, once the ratifications are exchanged.
The World Bank says it was signed after nine years of talks between India and Pakistan, with the help of the World Bank. The Bank is also a signatory.
1.2 How were the six rivers split?
The treaty gives the Eastern Rivers to India and the Western Rivers to Pakistan. Article II makes the Eastern Rivers waters available for India’s unrestricted use.
- Eastern Rivers: Ravi, Beas and Sutlej. PIB says they average around 33 million acre feet (MAF).
- Western Rivers: Indus, Jhelum and Chenab. PIB says they average around 135 MAF.
Think it through: Why is the split called lopsided?
Count the flows. 33 of 168 MAF is about one-fifth. So the Western Rivers carry about four-fifths. This is our own arithmetic from the PIB figures.
1.3 How has India used its own share?

PIB says India built Bhakra Dam on the Sutlej, Pong and Pandoh dams on the Beas, and Thein on the Ravi. It says India uses nearly 95% of its Eastern Rivers share.
PIB adds that about 2 MAF a year of Ravi water still flows to Pakistan below Madhopur. The figures are PIB’s, from February 2019.
What does the treaty say?
2.1 What must India do on the Western Rivers?
Article III says India must let flow all the waters of the Western Rivers. It must not permit any interference with them.
There are four exceptions. They are listed in Article III(2).
- Domestic use.
- Non-consumptive use.
- Agricultural use, as set out in Annexure C.
- Generation of hydro-electric power, as set out in Annexure D.
PIB adds that this hydropower right covers run-of-the-river projects. Their design and operation must meet the treaty’s criteria.
2.2 Who paid for Pakistan's replacement works?
Article V says India agrees to make a fixed contribution of 62,060,000 pounds sterling towards the cost of the works.
2.3 How is the treaty built, and how is it changed?
Article XII says the treaty consists of the Preamble, the Articles and Annexures A to H.
It can be modified only by a duly ratified treaty between the two Governments. It continues in force until terminated the same way.
Think it through: What does that mean for one side acting alone?
On the plain words, the treaty names no route for one government to end it. The 2026 Court said the same. Read more in card 5.
How are disputes settled?
3.1 What is the three-step ladder?
The World Bank explains the ladder simply. Questions go to the Commission. Differences go to a Neutral Expert. Disputes go to a Court of Arbitration.
Article IX starts the same way. A question is first examined by the Commission, which tries to settle it by agreement.
3.2 What is the Permanent Indus Commission?
- Each country creates a permanent post of Commissioner for Indus Waters.
- The two Commissioners together form the Commission.
- It meets at least once a year, alternately in India and Pakistan.
- It makes a general tour of inspection once in every five years.
These points come from Article VIII.
3.3 What does the World Bank do?
The World Bank calls its own role limited and procedural. It only designates people for Neutral Expert or Court of Arbitration roles, when a party asks.
In October 2022 it appointed Michel Lino as Neutral Expert and Sean Murphy as chairman of the Court. The Bank says the two mechanisms are independent.
Current Affairs · The case and the ruling
The Kishenganga and Ratle case
4.1 What is the quarrel about?

The World Bank says the disagreement is about the design of two plants. They are Kishenganga (330 MW) and Ratle (850 MW). Both lie in India on tributaries of the Jhelum and Chenab.
The two countries disagree over whether the designs of these plants contravene the treaty.
4.2 Why are there two tracks?
The Court’s release gives the order of events. Pakistan began arbitration in August 2016. India asked for a Neutral Expert in October 2016.
The World Bank paused both processes in December 2016. The pause was lifted in 2022.
4.3 What has the Court decided so far?
- 6 July 2023: Award on Competence. The Court rejected India’s objections.
- 8 August 2025: Award on Issues of General Interpretation.
- 10 November 2025: decision on a request for clarification.
- 15 May 2026: supplemental award on maximum pondage.
The Neutral Expert’s own track is still running. His final decision is expected around 16 July 2027.
He had also ruled on 7 January 2025 on certain competence issues. The PCA released that decision on 20 January 2025.
Sources
- Permanent Court of Arbitration, press release of 31 August 2026 on the Award on Treaty Status and Order on Interim Measures
- Permanent Court of Arbitration, press release of 20 January 2025 (Neutral Expert, Case 2023-14)
- Permanent Court of Arbitration, press release of 11 August 2025 (Case 2023-01)
- Permanent Court of Arbitration, press release of 10 November 2025 (Case 2023-01)
- Permanent Court of Arbitration, press release of 5 June 2026 (Case 2023-01)
What does “abeyance” mean?
5.1 What did India say in April 2025?
The Court’s release says India issued a statement on 23 April 2025. It followed an attack in Jammu and Kashmir. All India Radio names the Pahalgam attack.
The statement said the treaty “will be held in abeyance with immediate effect” until Pakistan credibly and irrevocably abjures its support for cross-border terrorism.
5.2 What did the Court say about the word?
On 31 August 2026 the Court said “abeyance” is not used in the treaty. It said the word has no technical meaning in international law.
In law the words for a treaty’s status are suspension and termination. So the Court proceeded as if India may be claiming one of those two.
5.3 Why did the Court say the treaty stays in force?
- The treaty does not let one party terminate or suspend it, or put it in abeyance.
- No rule allows a State to end a treaty on grounds of its “sovereignty”. Agreements must be kept.
- Three possible grounds were examined: material breach, fundamental change of circumstances, and armed conflict.
- On the terrorism claim, even if it were true, the Court found no material breach of the treaty by Pakistan.
- The Court noted the treaty had remained in force through multiple armed conflicts since 1960.
The decision was unanimous. The Court said none of the grounds could justify suspension or termination. In its words, the treaty remains fully in force, and India must observe its obligations.
The 2026 ruling
6.1 What did the interim order say about Ratle?
The Court also issued an Order on Interim Measures. It bars India from concreting the Ratle dam wall and power intake above certain levels.
The bar lasts until 90 days after the Neutral Expert’s final decision, which is expected in July 2027.
- India must also report changes to the Ratle construction schedule.
- The Court declined two other measures that Pakistan had asked for.
6.2 Who sat on the Court, and did India take part?
The Court is chaired by Professor Sean D. Murphy. India did not take part in this phase.
The Court says it still looked at India’s position, as far as its public statements and letters showed it.
6.3 What did India answer?
All India Radio reported on 1 September 2026 that India strongly rejected the ruling. It said the Ministry of External Affairs called the Court unrecognised and said India would not be bound.
The report adds that the Ministry said the treaty remains in abeyance. It also said the panel has no jurisdiction over India’s sovereign decisions.
The report says India argues the panel itself was set up in violation of the treaty. This is India’s view, not the Court’s.
Exam Practice
Exam traps
7.1 Which mix-ups does this topic invite?
- Signed: 19 September 1960 at Karachi.
- Eastern Rivers: Ravi, Beas, Sutlej, to India.
- Western Rivers: Indus, Jhelum, Chenab, to Pakistan, with India’s four uses.
- Ladder: question, difference, dispute.
- Abeyance: 23 April 2025, not Uri in 2016.
- 31 August 2026: the Court said the treaty remains fully in force. India rejects this.
Remember this
- Signed: Karachi, 19 September 1960, with the World Bank as co-signatory.
- Split: Eastern Rivers to India, Western Rivers to Pakistan.
- Let flow: Article III, with four uses for India.
- Ladder: Commission, Neutral Expert, Court of Arbitration.
- Ending it: only by a ratified treaty between both governments.
- As of 9 October 2026: the Court says the treaty is fully in force. India rejects the ruling.
Explain it back: Say in your own words why the Court said “abeyance” is not a legal status. Then name the three steps of the dispute ladder.
Check your understanding
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MCQ on the Indus Waters Treaty
Try 6 practice questions on the treaty’s signing, rivers, dispute ladder and abeyance.
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