Claiming the report by Raymond Lafitte as a "victory" for Pakistan, Power Minister Liaqat Jatoi said Islamabad, however, reserves the right to challenge the expert's decision to uphold India's design of the spillway gates (to regulate the flow of water) of the project. Jatoi said Lafitte "held these (spillway gates) as in conformity with international practice and state of the art."

"Let me give you good news. The neutral expert in his verdict said that the design of the project (by India) is a violation of the (Indus Water) treaty," Jatoi told a hurriedly-called press conference after the report was handed over to Indian and Pakistani diplomats in Bern, Switzerland.

Earlier, Foreign Office spokesperson Tasnim Aslam said Pakistan would abide by the verdict of Lafitte. "The neutral expert's verdict is binding," she said.

Jatoi claimed the neutral expert has found that India's calculation on "free board" (height of the dam above the maximum water line), were incorrect.

The expert has directed India to reduce the free board from 4.5 meters to three meters, which amounted to 33 per cent reduction, he said.

About the power intakes, Jatoi said "...the neutral expert determined that the location of intake stipulated by India was not at the heighest level as required in accordance with the treaty.

"He has, therefore, decided that instead of locating the intakes at the elevation of 818 meters, it should be located at the elevation 821 meters. In other words, the power intake should be raised by three meters," he said.

On pondage (water held in a reservoir for short durations), Jatoi said the expert has determined that the calculation methodology used by India was not in conformity with the treaty. He has accordingly directed that India should reduce the pondage from 37.722 mcm to 32.56 mcm. "However he has observed that the Indian design and analysis is incorrect. He has concluded that India is neither correct in its analysis nor its calculations," Jatoi claimed.

India welcomed the report on Baglihar saying the finding of neutral experts that New Delhi's designs were in conformity with the basic principles of the Indus-Water treaty.

"We are very happy with the report (Baglihar)," Water Resources Minister Saifuddin Soz told reporters in New Delhi. The final determination of the neutral experts confirms that India's designs of the dam were in conformity with the basic prinples of the Indus-Water treaty.

World Bank-appointed neutral expert had cleared Baglihar Power Project in J&K but asked India to reduce height of dam by 1 and a half metres.