A Permanent Court of Arbitration panel in The Hague ruled that India must continue to honor the Indus Waters Treaty with Pakistan. The panel rejected India’s position that it could unilaterally suspend the water-sharing agreement, finding no legal basis for India to terminate the pact on its own. New Delhi was also ordered to scale back construction on its Ratle hydroelectric project in Indian-administered Kashmir until a World Bank-appointed neutral expert reviews the design.

India rejected the ruling outright, stating it does not recognize the court’s jurisdiction and does not intend to comply. Pakistan, which depends heavily on the Indus river system for agriculture and drinking water, welcomed the decision. Because the ruling lacks its own enforcement mechanism, its practical effect will depend on diplomatic pressure and whether India alters its approach.