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February 1, 2023

Reforming the regime for resolution of trade disputes

In 2018, as part of the Pakistan Regional Economic Integration Activity (PREIA), we advised the Ministry of Commerce, Government of Pakistan on the reforming of the regime for resolution of trade disputes

In 2018, as part of the Pakistan Regional Economic Integration Activity (PREIA), we were engaged by Development Alternatives, Inc. to advise the Ministry of Commerce, Government of Pakistan (MoC), on mechanisms for the resolution of trade and related disputes in Pakistan.

We assisted MoC with identifying key areas for reform in the existing system and conceiving a framework for reform. We also shared our recommendations on the statutory provisions necessary for making the resolution of trade disputes more efficient. Our advice has culminated in the Trade Dispute Resolution Bill, which provides for several mechanisms, including expedited litigation and alternate dispute resolution (ADR), for the resolution of disputes relating to the export and import of goods and services, including by means of e-commerce.

The Bill provides for the establishment of a Trade Disputes Resolution Commission having certain powers of a civil court to which parties may refer their disputes. The Commission will allocate such dispute to an appropriate dispute resolution mechanism, including expedited litigation by a commercial bench of a High Court, ADR (including arbitration) and final determination of the dispute by the Commission.

In establishing an efficient mechanism for the resolution of trade disputes, the Bill aims to improve the enforcement of contracts in Pakistan, an area long identified in the World Bank’s Ease of Doing Business Index as requiring improvement in Pakistan.

The proposed Bill has been approved by the Cabinet as well as the Standing Committee on Commerce and now awaits presentation before Parliament.

Our team in this matter was led by partner Mazhar Bangash and comprised senior associate Ehsan Ejaz.

For further details, please see the Tribune’s article.

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