The arbitration law pertaining to domestic arbitration in Pakistan is now very well settled with consistent sanction from the superior courts in the last six decades. Following the ratification of the New York Convention in 2006, international arbitration has been codified in a way that not only provides certainty to the process but also enables international investors to find themselves in a familiar arbitrational jurisdiction. The article also briefly discusses legislative developments with respect to the legal framework of commercial arbitration and canvasses some of the landmark cases reported in various law journals in Pakistan.
Alternative dispute resolution (“ADR”) has gone through its lows and highs in the legal history of Pakistan. By far the most common amongst the various alternative dispute resolution mechanisms in Pakistan is arbitration. While there are different reasons for choosing arbitration over the other ADR mechanisms, such as mediation or conciliation, the striking reason for such choice appears to be the applicable laws of Pakistan. The laws of Pakistan are by now very well settled in respect of arbitration, including aspects such as the conduct of arbitration, appointment of arbitrators, powers of arbitrators, contents of an award and enforcement of such awards. Therefore, the clarity of the procedures enables the parties to confidently choose arbitration in appropriate cases. Whereas mediation and conciliation do find mention in Pakistan laws, as an option to be used by parties to disputes, lack of detailed procedures (prior to, during or after the chosen ADR option) is the primary obstacle in attracting parties to consider these two mechanisms. As for negotiation, another ADR mechanism, it does not really find mention in the laws altogether.
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