Pakistan has the potential to become a leading hub for international arbitration, thanks to substantial cost benefits and prevailing geopolitical goodwill, according to Justice Jawad Hassan of the Lahore High Court’s Rawalpindi bench. He was speaking at a seminar titled “Can Pakistan Become a Seat of International Dispute Resolution?” held at the Islamabad Policy Research Institute (IPRI).
Justice Hassan noted that Pakistan is making good progress on infrastructure and laws related to arbitration and mediation, pointing to a large demand for commercial arbitration and mediation services. He also mentioned that the pending judgement in the Star Hydro case would set the stage for further progress in this area.
The seminar brought together senior jurists, advocates, and arbitration specialists to brainstorm whether Pakistan could establish itself as a venue for international arbitration and mediation. Among the participants were former Punjab advocate general Asma Hamid, Barrister Salahuddin Ahmed of MCA Law Associates, Brig (retd) Raja Shozab Majeed, Deputy Director and Chair of the Chartered Institute of Arbitrators (CIArb) Pakistan, Feisal Naqvi of BNR, Barrister Mian Sheraz Javed, Chair of CIArb, and eminent international lawyer Ahmer Bilal Soofi.
A broad consensus emerged that while the potential exists, realising this vision would require sustained, decade-long strategic collaboration across the legal and institutional sectors. The panel was unanimous that Pakistan had a genuine opportunity to become an international arbitration hub, but only through sustained legal and institutional reforms and capacity-building over the coming decade.
It was noted that as Pakistan expands trade and attracts investment through projects such as CPEC, most of its commercial disputes are still heard abroad in London, Singapore, or Dubai, making the country a consumer rather than a provider of arbitration services. This imbalance highlights the need for Pakistan to develop its own arbitration capacity to retain disputes within its borders.
The country’s arbitration capacity is expanding as case law and the number of mediators grow. However, experts stressed that without a concerted effort to build the necessary infrastructure and legal framework, Pakistan would continue to lose out on the economic benefits of hosting international arbitration.
The discussion underscored that Pakistan’s journey to becoming a preferred seat of international arbitration will not be quick or easy. It will require a coordinated approach involving the government, judiciary, legal professionals, and educational institutions to create a robust ecosystem. The potential is there, but so are the challenges.
With the right policies and sustained commitment, Pakistan could transform itself from a consumer to a provider of arbitration services, unlocking significant economic and reputational gains. As Justice Hassan indicated, the progress on infrastructure and laws is a positive sign, but much more needs to be done to realise this ambitious goal.
Source: Dawn News