The Permanent Court of Arbitration has reaffirmed India’s rights under the Indus Waters Treaty (IWT) to construct hydroelectric projects on the Indus, Jhelum and Chenab tributaries, provided water flows to Pakistan remain uninterrupted, with exceptions allowed for power generation. While India maintains that the treaty requires modernization to address climate change, advanced water management and national security concerns—particularly in light of Pakistan’s alleged support for cross-border terrorism—Islamabad has called for a return to normal treaty operations. The Pakistani Foreign Office welcomed the court’s interpretation but stressed that India must comply strictly with the treaty’s provisions. The ruling underscores the intersection of water resource governance, regional security, and evolving environmental challenges, highlighting persistent mistrust and the need for structured bilateral dialogue to ensure sustainable and equitable river management.