Pakistan has spent close to $6 million to pursue a case against India at the Court of Arbitration in The Hague, including contributions sought by the body from India, at a time when Islamabad is grappling with a range of economic problems and implementing an austerity drive that has hit most government departments.
The Pakistan government’s budget papers for 2026-27 show that out of the Water Resources Division’s current expenditure budget of about $15.3 million (Pakistan ₹ 4.241 billion), more than half – or $7.9 million (Pakistan ₹ 2.187 billion) – has been allocated to the Pakistan Mission for Indus Waters. Pakistan has so far paid almost $6 million towards the Court of Arbitration proceedings in The Hague in connection with its objections to the Ratle and Kishenganga hydropower projects. After India suspended the Indus Waters Treaty as part of punitive measures following the Pahalgam terror attack in 2025, it also stopped attending meetings convened by the neutral expert. These developments come at a time when the Pakistan government’s latest austerity drive, announced on September 17, halved fuel allocations for official vehicles, prohibited the purchase of new government vehicles, restricted foreign travel and official dinners, and led to a 5% cut in non-employee expenditure. The fiscal restraint has also impacted development spending, as provincial development plans have been cut back in the 2026-27 budget and most new federal projects have been ruled out.
“This is precisely why scrutiny is necessary.
Significantly, this amount includes the contribution sought by the court from India, people familiar with the matter said. “Pakistan has been footing India’s bill too,” one person said, noting that the court’s own records show India has neither participated in the arbitration proceedings nor advanced funds sought by the court. “Pakistan has chosen to carry on regardless, paying to sustain proceedings before a body that only it has recognised,” the person said. it completely stayed away from proceedings of the Court of Arbitration, which New Delhi has consistently said it does not recognise While India attended meetings convened by a neutral expert appointed by the World Bank to hear the issue of the Ratle and Kishenganga hydropower projects. “At a time when Islamabad has unveiled savings in fuel, travel and routine administration, its expensive campaign at The Hague continues undisturbed,” the first person said. A government that invokes national sacrifice to restrict fuel use, foreign travel and wedding dinners is trying to evade scrutiny by declaring its Hague campaign a national cause,” the first person said.
