ISLAMABAD: The Court of Arbitration in The Hague has announced its decision on the question of its competence to hear the water disputes between Pakistan and India. In response to media queries, the FO spokesperson said that Government of Pakistan has confirmed that it has received the Court’s award, which addresses the competence of the Court and outlines the way forward for resolving the disputes related to the Kishenganga and Ratle Hydroelectric Projects.
The Court of Arbitration has upheld its competence to proceed with the case and has expressed its intent to address the issues in dispute. The disputes involve broader questions regarding the interpretation and application of the Indus Waters Treaty, a foundational agreement on water sharing between Pakistan and India.
Pakistan has reaffirmed its full commitment to the implementation of the Indus Waters Treaty, including its dispute settlement mechanism. The government hopes that India will also honor the Treaty in good faith, ensuring cooperation and mutual adherence to the agreed-upon terms.
This decision by the Court of Arbitration marks a significant development in the long-standing water disputes between Pakistan and India. Both countries play a vital role in the Indus river system, and the resolution of these disputes is crucial for ensuring equitable water distribution and maintaining regional stability.
As the process moves forward, the international community will closely observe the proceedings and the actions taken by both countries to implement the Court’s decisions. The outcome of these disputes will have far-reaching implications for the future of water management and cooperation in the region.
Pakistan had initiated the legal proceedings in August 2016, seeking the establishment of the ad hoc Court of Arbitration under Article IX of the Indus Waters Treaty. The country’s concerns regarding India’s projects had been repeatedly raised since 2006 for the Kishenganga project and 2012 for the Ratle project, without a satisfactory resolution. After Pakistan’s formal dispute settlement process began, India belatedly requested the appointment of a Neutral Expert.
Due to concerns over conflicting outcomes from parallel processes, the World Bank suspended the proceedings for the establishment of the Court of Arbitration and appointment of the Neutral Expert in December 2016. Following six years of unsuccessful negotiations to agree on a mutually acceptable forum, the World Bank lifted the pause in the dispute settlement process in 2022 and initiated both processes in parallel, appointing the Court of Arbitration and the Neutral Expert.
Despite Pakistan’s engagement in both processes, India has boycotted the Court of Arbitration. It has not nominated members nor attended preliminary hearings held in January and May 2023. In December 2022, India conveyed objections to the World Bank, challenging the primacy and competence of the Court. The Court of Arbitration has now unanimously declared its competence to hear the case, dismissing India’s objections.
In the next phase, the Court of Arbitration will address questions related to the interpretation and application of provisions within the Indus Waters Treaty concerning hydroelectric project design, operation, and the legal effect of past decisions made under the Treaty’s dispute resolution mechanism. The Court highlighted that the issues it will tackle are broader in scope than those before the Neutral Expert.
The decision of the Court of Arbitration is binding on both parties and is without appeal. Water security is a matter of critical importance for Pakistan, and the country remains committed to the implementation of the Indus Waters Treaty, including its dispute settlement mechanism.
Prior to the commencement of the Court of Arbitration proceedings, India sent a notice to Pakistan in January 2023, requesting negotiations for the review and modification of the Indus Waters Treaty. However, the Treaty does not provide for unilateral modification or abrogation by either side. Any modification of the Treaty would require mutual consent and ratification by both parties. Consultations are ongoing to determine the way forward in addressing this matter.
