Chief Justice of Pakistan leads arbitration law reform

In a bid to bring Pakistan's arbitration laws up to date, the Chief Justice of Pakistan has spearheaded the establishment of the Arbitration Law Review Committee (ALRC). This move comes as a response to the challenges and complexities faced by the existing Arbitration Act of 1940, which has long been in need of reform.

Headed by Justice Syed Mansoor Ali Shah from the Supreme Court, the ALRC is composed of representatives from key bodies such as the Ministry of Law and Justice, the Board of Investment, and the Law and Justice Commission of Pakistan (LJCP), in addition to arbitration experts. The Committee has recently put forward the proposed Arbitration Bill, 2024, which aims to streamline processes, reduce judicial intervention, and bolster enforcement mechanisms to promote the use of alternative dispute resolution methods.

Following the Federal Cabinet's preliminary approval of the Bill, discussions are underway to collaborate with provincial authorities for its enactment as a parliamentary Act. This legislative reform is anticipated to improve Pakistan's arbitration landscape, creating a more favorable environment for both local and foreign investments. By aligning with global best practices, the proposed Arbitration Bill, 2024, seeks to boost investor trust, minimize prolonged legal battles, and foster economic development through efficient dispute resolution mechanisms.

The establishment of the Arbitration Law Review Committee and the proposed Arbitration Bill, 2024, mark a significant step towards enhancing Pakistan's arbitration framework. These initiatives not only aim to address the shortcomings of the current legislation but also strive to attract more investments, both domestic and international, by providing a more efficient and reliable dispute resolution system. By modernizing its arbitration laws, Pakistan is poised to strengthen its position in the global business arena and promote economic growth in the years to come.