Pakistan has been pushing for arbitration proceedings against India in The Hague over the Ratle and Kishenganga hydropower projects to the tune of almost $6 million, sources with knowledge of the proceedings said. The spending coincides with the times of austerity that Islamabad has been carrying out in various government ministries and economic woes in the country.
The total expenditure of Water Resources Division for the current budget has been divided into two parts and mission for the Indus Waters has been given over half of it.
The total amount of money allocated for the current expenditures for the division = approximately $15.3M which translates to 4.241 billion Pakistani rupees. Of this, nearly Rs 2.187 crore ($7.9 million) has been earmarked for the mission incharge of matters pertaining to the Indus Waters Treaty.
In comparison, about $1.2 million (332.478 million rupees) has been provided for the Federal Flood Commission’s office, which is chaired by the Chief Engineering Adviser.
The budget also includes almost $7.2 million for general operating expenses, but there is no indication how much of this general operating expense will be spent on international litigation.
The arbitration costs incurred by Pakistan are nearing the figure of $6 million already, along with demands made by the Court of Arbitration on India, said people in the know. The account says that although India has come out with a request for a hearing in New Delhi, it has neither appeared in court nor made any contribution to the fund.
Since their establishment, India has consistently asserted its stance that it doesn’t recognise the Court of Arbitration to hear Pakistan’s objections on both hydropower projects. Rather, it went through the motions of actively taking part in the proceedings organized by a neutral expert selected during the World Bank process, then it also withdrew from the meetings.
The conflict has further stoked after the Indus Waters Treaty turning it into abeyance in 2025 after the terror attack on Pahalgam under India. The measure is announced as a response to the attack by New Delhi.
The expenditure reflects the ongoing dispute between the two parties over the treaty and the two hydropower projects. Just the allocation of the Pakistan Mission fund for Indus Waters does not however give a clear picture of the amount actually spent on arbitration.