Pakistan has reportedly spent more than USD 600,000 to keep legal proceedings related to the Indus Waters Treaty (IWT) running after India suspended the agreement following the April 22, 2025 Pahalgam terror attack. According to a report by The Economic Times, Pakistan is not only bearing its own costs but is also paying India’s share of expenses in international proceedings.
Pakistan paying both countries’ share
The report says India has withdrawn from proceedings before the Court of Arbitration (PCA) and the Neutral Expert mechanism linked to the treaty. As a result, Pakistan has been covering the costs that would normally be shared by both countries.
According to the report, Islamabad fears that if funding stops, the proceedings could be delayed or suspended, making it more difficult to pursue the matter at the international level.
India continues to boycott PCA proceedings
India has been boycotting the Court of Arbitration proceedings since 2023, arguing that they are not valid because the Neutral Expert process was already underway. Under the Indus Waters Treaty, India maintains that both mechanisms cannot operate simultaneously on the same dispute.
After India suspended the treaty following the Pahalgam attack, Pakistan again approached the Court of Arbitration. In June 2025, the court ruled that it had the authority to hear the dispute and said the treaty could not be suspended unilaterally under its provisions.
Pakistan bears additional financial burden
Since June 2025, the Court of Arbitration has reportedly held at least eight hearings, all of which India has boycotted. The report estimates that the cost of these proceedings is around USD 300,000 per country. With India refusing to participate, Pakistan has allegedly paid both shares, taking the total cost to more than USD 600,000.
Neutral expert proceedings also continue
India participated in the Neutral Expert process until the Pahalgam terror attack. After the attack, New Delhi formally requested that the proceedings be halted.
According to the report, India cleared all expenses related to the Neutral Expert mechanism up to July 2025. However, at least two hearings have taken place since then without India’s participation, with Pakistan reportedly bearing the entire cost.
As a result, the report estimates that Pakistan’s overall expenditure on treaty-related proceedings has now crossed USD 600,000.
First published on: Jul 17, 2026 12:45 PM IST
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