Pakistan Can Become an International Arbitration Hub Through Reforms: Speakers
Pakistan possesses the potential to emerge as a global center for dispute resolution, but achieving this goal necessitates continuous legal, institutional, and capacity-building reforms over the subsequent decade, as highlighted by speakers at a seminar held in Islamabad.
Organized by the Islamabad Policy Research Institute (IPRI), the seminar brought together renowned jurists, advocates, and arbitration experts to scrutinize Pakistan’s prospects as a venue for international arbitration and mediation.
IPRI President’s Opening Remarks:
Pakistan, as a trading nation with significant investments via projects like CPEC, faces a challenge: most of its commercial disputes are resolved abroad, notably in London, Singapore, or Dubai, at considerable cost in terms of money, time, and confidence. He noted that a typical international arbitration can cost parties anywhere between £2 million to $3 million. However, Pakistan’s recent role as a mediator, including hosting US-Iran talks, demonstrates its credibility in dispute resolution.
Foundational Strengths for an Arbitration Seat:
- Pakistan is a signatory to the New York Convention, allowing for the enforcement of domestic arbitral awards worldwide.
- The country’s courts exhibit a strong bias towards enforcing foreign arbitral awards.
- The arbitration framework, based on the 1940 Act, has seen a substantial increase in reported judgments, with approximately 120 decisions in the past two years.
- Pakistan is one of only seven nations with a mandatory mediation regime, successfully resolving high-value cases like settlements with independent power producers and a $6.6 billion refinery upgrade deal.
Comparative Analysis:
While Kenya (2013), Rwanda (2008), and Egypt (1978) have established arbitration centers, their caseloads primarily consist of domestic disputes. In Egypt, despite decades of existence, only 10% of arbitrator appointments were non-Egyptian. A 2025 survey revealed that London and Singapore remain the preferred seats for international arbitration, with African seats not chosen by most practitioners.
In conclusion, while Pakistan has the potential to become an international arbitration hub, it requires strategic efforts to attract and retain international cases.
