SECP moves to strengthen ADR system for faster business dispute resolution

June 19, 2026 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has moved to strengthen alternative dispute resolution (ADR) mechanisms and arbitration systems for resolving business disputes, aiming to reduce the burden on courts and improve efficiency in commercial case handling.

An important meeting held under the SECP brought together judges, representatives of the Ministry of Law, lawyers, and corporate sector stakeholders to discuss reforms in the regulatory and dispute resolution framework.

SECP Chairman Dr. Kabir Ahmed Sidhu emphasized the need for a more effective and transparent regulatory system to minimize business conflicts.

He noted that thousands of cases remain pending in courts across Pakistan, including multiple cases involving the SECP itself.

He stressed that resolving commercial disputes through arbitration and mediation could significantly ease pressure on the judiciary while reducing litigation costs and accelerating recoveries.

Dr. Sidhu highlighted international best practices, pointing to the positive outcomes of mandatory pre-litigation mediation in the United Kingdom, and stated that Pakistan also plans to introduce a similar system.

He further said that with judicial support, ADR mechanisms could bring meaningful improvements to Pakistan’s legal and commercial environment, while also enhancing investor confidence.

The SECP also announced plans to establish a Special Dispute Resolution Centre for the country’s financial sector. The centre will be developed in collaboration with the US Commercial Law Development Program (CLDP).

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