Lahore High Court judge cites Pakistan’s potential as an arbitration hub
Lahore High Court Judge Jawad Hassan said in Islamabad, Pakistan, that the country has the prerequisites to become a center for international arbitration. As Dawn reports, the judge linked this prospect to lower dispute-resolution costs, a favorable geopolitical situation, and the development of infrastructure and legislation in arbitration and mediation.
Hassan spoke at the seminar “Can Pakistan Become a Venue for International Dispute Resolution?” at the Islamabad Policy Research Institute. According to him, an expected decision in the Star Hydro case could contribute to the further development of this field.
Reforms and judicial practice
Participants in the discussion concluded that Pakistan could become a venue for international arbitration and mediation. At the same time, in their view, this would require consistent legal and institutional reforms and the training of specialists over the next decade.
The seminar noted that with growing trade and investment, including within the China-Pakistan Economic Corridor, most commercial disputes involving Pakistan are heard in London, Singapore, or Dubai. According to speakers’ estimates, a single international arbitration may cost the parties at least £2–3 million or dollars.
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Participants also pointed out that Pakistan is a party to the New York Convention, and arbitral awards issued in the country can be enforced abroad. According to them, Pakistani courts have developed an approach favorable to the recognition and enforcement of foreign arbitral awards.
Mediation and specialists
According to data presented at the seminar, two years ago there were only 56 published arbitration-related decisions in a system that still relies on a 1940 law. Their number now stands at about 120.
Participants stated that Pakistan is among seven countries worldwide with a mandatory mediation regime. According to their claims, mediation helped save more than 1 trillion rupees in public funds, including through the settlement of disputes with independent power producers and a $6.6 billion agreement to modernize an oil refinery.
The number of fellows of the Chartered Institute of Arbitrators in Pakistan has risen from six to eight to nearly 100 over two years. For comparison, the seminar cited figures of about 150 fellows in Singapore, 39 in the UAE, and 42 in India.
