Pakistan Faces Financial Burden in Indus Waters Treaty Dispute

Taking the issue of the dispute with India on the Indus Waters Treaty to the Permanent Court of Arbitration has cost Pakistan dearly. In the process of settling the dispute under the Indus Waters Treaty, both India and Pakistan are expected to contribute equally to the costs of arbitration. After India withdrew from this action, Pakistan now has to pay not only its own legal costs but also India's share of the costs of arbitration. According to a report in the Economic Times, Pakistan has already spent over $600,000 to keep the arbitration process going before the Permanent Court of Arbitration (PCA). The costs are expected to increase further as the hearings continue. India's decision to put the treaty on hold after the terror attack in Pahalgam on April 22, 2025, is at the root of this dispute. In fact, in the process of settling the dispute under the Indus Waters Treaty, both India and Pakistan are expected to contribute equally to the costs of arbitration. After the postponement of the Pahalgam terror attack, India's "Permanent Court of Arbitration" has decided to stay away from the arbitration process.