The Court of Arbitration (CoA), established under the Indus Waters Treaty (IWT) 1960, has concluded the second phase hearing on the merits in the ongoing arbitration case initiated by Pakistan against India.
The hearing wrapped up on February 3, 2026, at the Permanent Court of Arbitration (PCA) in The Hague, with the PCA serving as the secretariat.
Background of the Long-Standing Dispute
The case, formally known as the Indus Waters Western Rivers Arbitration (Pakistan v. India), stems from Pakistan’s concerns over India’s run-of-river hydroelectric projects on the Western Rivers—Indus, Jhelum, and Chenab—which flow into Pakistan.
Pakistan argues that certain design elements of these projects may violate IWT provisions, particularly regarding installed capacity, anticipated load, and maximum pondage limits outlined in Annexure D, Part 3.
Key Details of the Arbitration Process
Pakistan initiated the proceedings in 2016 under Article IX and Annexure G of the IWT to seek clarification on treaty interpretation and application.
The CoA, chaired by Professor Sean D. Murphy (USA) and including members from Belgium, USA, Jordan, and Australia, has handled the matter despite India’s consistent non-participation and non-recognition of the tribunal’s jurisdiction.
Second Phase Hearing on Merits
As per Procedural Order No. 17 (dated November 21, 2025) and Procedural Order No. 18 (January 24, 2026), this phase focused on determining the basis for India to calculate installed capacity and anticipated load for proposed Annexure D, Part 3 hydroelectric projects, and how these factors influence maximum pondage calculations.
Pakistan presented its arguments over the two-day session (February 2-3, 2026), while India did not appear or respond to invitations.
Implications and Current Status
The conclusion of the hearing marks progress in the multi-phase case, following earlier awards (including on competence in 2023 and merits in prior phases).
No final award on this phase has been issued yet; the CoA will deliberate and render its decision in due course.
The case underscores persistent tensions in Pakistan-India water-sharing relations, with Pakistan emphasizing treaty compliance to safeguard downstream water flows critical for agriculture and millions of people.
India has maintained that parallel mechanisms (like Neutral Expert proceedings) apply and has boycotted the arbitration.