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April 29, 2025

Pakistan’s Arbitration Law: Current Framework & Reform Proposals

A comprehensive overview of Pakistan's arbitration landscape by leading law firm RIAA Barker Gillette, examining current laws and proposed reforms.

Pakistan’s Arbitration Law

We authored the Pakistan Chapter of the Lexology Panoramic Arbitration 2025 publication, providing a comprehensive analysis of Pakistan’s arbitration law framework. The publication examines both domestic and international arbitration regimes, highlighting recent judicial developments and proposed legislative reforms that may reshape Pakistan’s arbitration landscape. It is essential reading for legal practitioners, businesses engaging in cross-border transactions, and foreign investors navigating dispute resolution in Pakistan.

The chapter begins with an exploration of Pakistan’s dual-track arbitration system. Domestic arbitrations remain governed by the Arbitration Act 1940, while international matters fall under the Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act 2011, which incorporates the New York Convention into domestic law.

Partner Yousaf Khosa commented:

“Pakistan’s judiciary has increasingly adopted a pro-enforcement stance toward arbitration awards,”

The publication offers an in-depth examination of domestic arbitration governed by the Arbitration Act 1940, exploring procedural mechanisms, enforcement provisions, and interaction with international arbitration principles. The chapter draws on RIAA Barker Gillette’s extensive experience in Pakistan arbitration to examine current practice, including tribunal constitution, evidence procedures, interim measures, and award enforcement mechanisms under the existing legal framework.

A significant focus of the publication is the draft Arbitration Bill 2024, which proposes substantial modernization of Pakistan’s arbitration framework. If enacted, this legislation would align Pakistan’s regime with UNCITRAL Model Law standards, introducing provisions for emergency arbitrators, expanding tribunal powers regarding interim measures, and streamlining enforcement procedures. However, it remains a proposed bill that has not yet been enacted into law, and its final form and implementation timeline remain uncertain.

Partner Mayhar Kazi observed:

“The proposed legislative reforms, if enacted, would address significant procedural gaps in Pakistan’s arbitration landscape,”

The chapter examines recent Supreme Court jurisprudence that signals a more pro-arbitration approach in Pakistan. Notable decisions like Kausar Rana Resources v Qatar Lubricants Company (2024) and Taisei Corporation v AM Construction Company (2024) have expanded the scope of arbitrable disputes and emphasized minimal judicial interference in arbitration matters.

Partner Shahbakht Pirzada added:

“Recent Supreme Court decisions mark a significant shift in Pakistan’s arbitration jurisprudence, expanding the scope of arbitrable disputes beyond traditional limitations,”

For a comprehensive understanding of Pakistan’s arbitration framework, including recent developments and practical considerations, read the full Pakistan chapter in Lexology Panoramic’s Arbitration 2025.

For expert arbitration advice from Pakistan’s premier dispute resolution team with extensive experience in both domestic proceedings and international arbitration matters, contact our Partners, Yousaf Khosa, Mayhar Kazi or Shahbakht Pirzada today.

This article is not legal advice; it provides information of general interest about current legal issues.


RIAA Barker Gillette is Pakistan’s premier law firm, with an on-the-ground presence in four major cities in Pakistan: Karachi, Islamabad, Lahore, and Peshawar, and affiliated offices in Dubai (DIFC) and London.

The firm practices in all areas of corporate, commercial and dispute resolution law. Leading international legal directories consistently recognize the firm as a top-tier law firm in Pakistan.

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RIAA Barker Gillette is the exclusive member firm in Pakistan for Lex Mundi, the world’s leading network of independent law firms with in-depth experience in over 125 countries worldwide.  

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