India rejected the jurisdiction of the International Court on the Indus Water Treaty while Pakistan welcomed the ruling that interpreted the design criteria for India’s new run-of-river hydropower projects on the Western Rivers, Chenab, Jhelum and Indus, saying it justified its position on the Indus Waters Treaty, which India had suspended after the Pahalgam attack.

India had never recognised the Permanent Court of Arbitration, which allegedly held that India should “let flow” the waters of the Western Rivers for unrestricted use by Pakistan. India had instead focused on the neutral expert mechanism.

“The specified exceptions for generation of hydro-electric plants must conform strictly to the requirements laid down in the treaty, rather than to what India might consider an ‘ideal’ or ‘best practices’ approach,” Pakistan’s foreign office said on Monday.

While India’s formal response was expected on Wednesday, sources recalled that it had earlier informed modification of the Indus Waters Treaty in view of prolonged disputes over the Kishanganga and Ratle projects in Jammu and Kashmir. India had never agreed to the World Bank’s move to simultaneously activate both the neutral expert mechanism and, at Pakistan’s insistence, the Court of Arbitration on the same issues, which was why it sought reconsideration of the treaty’s dispute resolution process.

In October 2022, the World Bank appointed both a neutral expert and a Court of Arbitration despite acknowledging India’s concerns that simultaneous proceedings created practical and legal challenges.

Following Monday’s decision, Pakistan reiterated its commitment to the Indus Waters Treaty and urged India to resume its functioning. India maintained that the treaty would remain in abeyance until Pakistan took action against cross-border terrorism.