In an attempt to modernize Pakistan’s legal regime on arbitration, the Law and Justice Commission of Pakistan assembled the Arbitration Law Review Committee (the “ALRC”), and tasked it to prepare a new legislation on the subject. After protracted deliberations by members of the ALRC, the draft Arbitration Act, 2024 (the “Draft Act”) has come into…
“Small is Beautiful”, a collection of essays by the economist E. F. Schumacher, was published first in 1973, more than 50 years ago. Schumacher’s basic thesis was that the latest, shiniest or most complex technology was not necessarily the best option for developing countries. Instead, he argued in favor of a practical, more “people-centric” approach,…
While Pakistan is heading towards promulgating a new arbitration law, developments continue to take place under the extant Arbitration Act, 1940 (“the Act”). Section 34 is one of the most availed provisions of the Act, which provides for the stay of court proceedings where an arbitration agreement exists between the parties. This provision can be…
For decades, Pakistan’s arbitration framework has faced criticism for its inconsistency and inefficiency, contributing to the country’s staggering backlog of over 2.26 million cases in the courts. This backlog includes cases affected by an ineffective arbitration regime that encourages arbitral matters to be taken to courts as a result of their extensive interventionist powers pursuant…
In April 2023, the Chief Justice of Pakistan directed the formation of an Arbitration Law Review Committee (“ALRC”) to carry out a review of arbitration laws in Pakistan and propose reforms. The ALRC, which was formed under the aegis of the Law and Justice Commission of Pakistan, was also directed to prepare legislation that would…
The pro-enforcement presumption is now well-established in Pakistan, where the doctrine continues to be regularly tested before the Pakistani courts. This blog post analyzes the latest developments under the 1958 New York Convention (“Convention”), including international precedents, and relevant Pakistani law on the recognition and enforcement of interim, foreign arbitral awards in Pakistan. The…
Muddled in severe stress and conflict since the 1950s, the transboundary Indus basin is home to one of the longest rivers in Asia. Barraging disputes led to the signing of the Indus Waters Treaty of 1960 (“IWT”) between Pakistan and India. Oft-cited as one of the most successful transboundary water-sharing mechanisms in the world, the…
Last month, Pakistan International Disputes Weekend 2023 (PIDW 2023) brought to the fore important discussions on international dispute resolution, to support restructuring access to justice and improvement of the rule of law index in Pakistan. This post recaps the discussions on Day 2 of PIDW 2023, whilst yesterday’s post highlighted the key points from Day…
Last month, the historically prominent city of Lahore, placed itself on the map among other global hotspots for international dispute resolution-focused events, Pakistan International Disputes Weekend 2023 (PIDW 2023) co-hosted by Chartered Institute of Arbitrators (CIArb) Pakistan Branch, MK Consultus LLP and TCC ADR Center was held on 20 and 21 May 2023 at the Pearl…
“International Conference: Expeditious Dispensation of Justice – ADR The Way Forward” was held on 1 and 2 September, 2022 at Serena Hotel, Islamabad, Pakistan and in the Islamabad High Court respectively. The conference was dedicated to exploring the ways in which alternative dispute resolution (ADR) and arbitration can support the progressive development of the legal…
Mr. Rana Sajjad Ahmad, thank you for joining us on the Kluwer Arbitration Blog! We are grateful to have the opportunity to learn more about the Center for International Investment and Commercial Arbitration (CIICA) and your experience with enhancing the role of international arbitration in Pakistan. Could you briefly introduce yourself to our readers?…
In Pakistan, the law governing international arbitrations resulting in a foreign award is the Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act, 2011 (“2011 Act”). To those who are unfamiliar with the 2011 Act, it may come as a surprise that it does not provide any remedy to an applicant challenging the arbitration…
The obligation of contracting states to recognize arbitration agreements and refer the parties to arbitration is provided in Article II of the New York Convention 1958 (the ‘Convention’). This post will endeavor to evaluate the meaning of the phrase ‘refer the parties to arbitration’ used in Article II(3) of the Convention and whether this phrase…
Recently, the Center for International Investment & Commercial Arbitration inaugurated its Young Arbitration Group in Pakistan in a conference which attracted foreign panelists who efficaciously explained the theory and practice of international arbitration, highlighting the room for improvement in Pakistan. This has been summarized in a prior post on the Blog, which also explained that…
On 15 and 16 November 2019, the Centre for International Investment and Commercial Arbitration (CIICA), organised a conference in Islamabad, Pakistan celebrating the inauguration of its Young Arbitration Group (YAG). The conference, titled “International Arbitration in Pakistan: Opportunities for the Next Generation” was, in many respects, a first-of-its-kind in Pakistan. CIICA, based in Lahore, is…
Introduction In July this year, an International Centre for Settlement of Investment Disputes (ICSID) based arbitration tribunal ordered the Government of Pakistan (GOP) to pay a massive $5.8 billion to Tethyan in compensation. The legal battle between Tethyan and GOP started in 2011 when GOP refused to grant a mining lease to Tethyan after it…
Pre-arbitration procedural requirements come into operation before the commencement of arbitration proceedings where parties have agreed on a multi-tiered dispute resolution mechanism. They are especially common in construction and engineering contracts. The Islamabad High Court (IHC) in Pakistan has addressed issues related to the nature of these requirements and consequences of non-compliance in its recent…
The Convention on the Recognition and Enforcement of Foreign Arbitral Awards (“Convention”), 1958 was adopted by Pakistan on 14 July 2005 through the Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Ordinance, 2005. This was re-promulgated in the years 2006, 2007, 2009 and 2010 until it was finally enacted in 2011 (“2011 Act”). …
International arbitration has been widely recognized as an efficient process for resolving State-to-State disputes. Factors such as procedural flexibility and party autonomy, which contribute to general appeal of international arbitration, play out to render arbitration as the preferable option for settlement of complex disputes between States. More importantly, however, the success and broader acceptance of…
On 20 December 2013, the final phase in the Indus Waters Kishenganga Arbitration was completed with the rendering of a Final Award by the seven-member Court of Arbitration (“Court”) tasked with resolving the latest water dispute between Pakistan and India. The Court was constituted in 2010 following a Request for Arbitration submitted by Pakistan under…
