Islamabad: In an important step to bring Pakistan’s arbitration framework in line with international standards, the Chief Justice of Pakistan has formed the Arbitration Law Committee (ALRC) to amend the old Arbitration Act of 1940 due to various complexities and related issues. Headed by the Supreme Court Justice Syed Mansoor Ali Shah, ALRC consists of representatives from the Ministry of Law and Justice, Investment Council, Law and Justice Commission of Pakistan (LJCP) and distinguished academics and practitioners in arbitration.
After a detailed discussion, the Council passed the proposed Arbitration Bill, 2024, which represents a significant step in the modernization of Pakistan’s arbitration landscape. The bill aims to streamline, reduce judicial intervention and develop enforcement mechanisms, thereby reducing ambiguities and promoting alternative dispute resolution mechanisms. The Federal Cabinet approved the content of the Bill in principle and began negotiations with the provinces for adoption as an Act of Parliament.
This important reform is expected to significantly improve the legal framework for arbitration in Pakistan and create a more favorable environment for foreign and domestic investment.
