Indus Waters Treaty is a ongoing dispute between India and Pakistan. And Islamabad going to shell out a heavy amount to ensure the proceedings of the international court, which India has long boycotted. According to a report in the Economic Times, Pakistan is having to bear not only its own expenses but also India’s bill. According to the report, this amount has exceeded $600,000 (approximately ₹57.7 million) which is more than ₹165 million in Pakistani currency. But the question is: what is this whole matter? Why is India not going to court? And why is Pakistan having to pay India’s expenses?
What’s the dispute?
The Indus Waters Treaty was signed between India and Pakistan in 1960. It sets out rules for the use of river water between the two countries. In 2016, India began construction of the Kishanganga Dam and announced the new Ratle hydroelectric project on the Chenab River. Pakistan objected to the design of both projects, arguing that their design violates the terms of the treaty.
India argued that such technical disputes should be resolved through a neutral expert. Pakistan, on the other hand, wanted the matter to go directly to the Permanent Court of Arbitration (PCA). The situation led to the two processes running almost simultaneously. India consistently maintained that two parallel processes cannot be conducted on the same dispute.
India boycotted the court
India ceased participation in the PCA proceedings in 2023. India clearly states that the court lacks jurisdiction to hear this case and that its proceedings are invalid. Subsequently, following the Pahalgam terrorist attack on April 22, 2025, India decided to suspend the Indus Water Treaty. India also distanced itself from the Neutral Expert process. This means that India’s stance is clear: it will not participate in these international processes for the time being.
Why does Pakistan have to bear India’s expenses?
Despite India’s refusal, Pakistan continued with the PCA proceedings. The court declared itself competent to hear the case in June 2025, stating that the treaty cannot be suspended unilaterally. Several hearings have since been held, but India has not participated.
The costs of international arbitration proceedings are typically borne by the two countries involved in the dispute. However, since India is not participating, it is not paying any fees. According to the report, Pakistan is therefore bearing both its own and India’s expenses to continue the process. It is reported that Pakistan has spent over $600,000 on the PCA proceedings alone, including India’s share.
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