ISLAMABAD:
The Supreme Court has highlighted the significant economic benefits of arbitration as a cost-effective, efficient and confidential means of resolving disputes.
“Arbitration eases the burden on domestic courts, improves business productivity and provides a faster resolution process, thereby minimizing disruption to businesses,” said a judgment written by SC Senior Judge Syed Mansoor Ali Shah.
Justice Shah was heading a three-member bench that also included Justice Irfan Saadat Khan and Justice Aqeel Ahmed Abbasi that heard a case related to the enforcement of an arbitration agreement.
According to the verdict, the ability to enforce international arbitration awards strengthens trade, while the stable and predictable dispute resolution mechanism of arbitration promotes investor confidence, making the country an attractive destination for foreign investment. .
“These factors collectively foster a favorable business environment, drive economic growth and enhance the country’s competitiveness on the global stage.”
The court noted that a draft law for a new arbitration law, prepared by the Law and Justice Commission of Pakistan, was submitted to the federal government through the Ministry of Law on May 2, 2024.
He said this bill aims to modernize the outdated arbitration dispute resolution framework, which has remained largely unchanged since 1940.
“We are optimistic that the federal government will prioritize the nation’s broader economic interest and ensure the rapid enactment of new arbitration legislation to provide an effective and contemporary dispute resolution mechanism for the people.
“The office should send a copy of this judgment to the Attorney General of Pakistan for further correspondence and as a reminder to the relevant ministry,” he added.
