Pakistan's first financial DRC moves closer to reality

June 20, 2026 (MLN): Pakistan's financial regulatory landscape edged closer to a significant milestone as the Securities and Exchange Commission of Pakistan (SECP) advanced plans to establish the country's first dedicated Financial Services Dispute Resolution Centre (DRC).

Its a proposed independent, not-for-profit body designed to offer faster, more affordable, and accessible resolution of financial disputes for consumers, investors, and institutions alike.

To drive the initiative forward, the SECP hosted a stakeholder consultation in Islamabad in collaboration with the U.S. Department of Commerce's Commercial Law Development Program (CLDP) and Singapore's Financial Industry Disputes Resolution Centre (FIDReC), said a press release issued.

The session brought together representatives from the judiciary, financial regulators, and key market institutions, including the Pakistan Stock Exchange (PSX), Pakistan Mercantile Exchange (PMEX), Central Depository Company (CDC), National Clearing Company of Pakistan Limited (NCCPL), Mutual Funds Association of Pakistan (MUFAP), and the Insurance Association of Pakistan.

Speaking at the opening, SECP Commissioner Muzzafar Ahmed Mirza said the strength of a financial system lies not only in its operational efficiency but also in how effectively it resolves disputes.

He stressed the need for accessible and timely dispute-resolution mechanisms to bolster public confidence in financial markets.

CLDP representatives shared international experiences in dispute-resolution reform and reaffirmed their commitment to supporting SECP in building the institutional framework and capacity required for the proposed centre.

Officials from Singapore's FIDReC highlighted the success of that country's specialised dispute-resolution model and noted its adaptability to Pakistan's financial sector context.

Closing the event, SECP Chairman Dr. Kabir Ahmed Sidhu said mediation had evolved globally from a mechanism of last resort into the preferred first step for resolving disputes, adding that legislative backing and judicial endorsement of mandatory mediation could reduce litigation costs, accelerate recoveries, improve enforcement, and strengthen investor confidence.

Former Supreme Court judge Justice (R) Mushir Alam and Lahore High Court judge Justice Jawad Hassan both welcomed the initiative, noting that institutionalised mediation would ease court backlogs, preserve commercial relationships, and make justice more accessible.

Participants broadly endorsed the DRC proposal and called for continued stakeholder engagement as Pakistan moves forward with plans to establish the institution.

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