June 12, 2024 (MLN): In a significant move to align Pakistan's arbitration framework with international standards, the Chief Justice of Pakistan has established the Arbitration Law Review Committee (ALRC) to revamp the outdated Arbitration Act of 1940 owing to various complexities and associated issues.
Chaired by Justice Syed Mansoor Ali Shah of the Supreme Court, the ALRC included representatives from the Ministry of Law and Justice, the Board of Investment, the Law and Justice Commission of Pakistan (LJCP), and distinguished academic and practitioner experts in arbitration.
After thorough deliberations, the Committee finalized the proposed Arbitration Bill, 2024, representing a crucial step toward modernizing Pakistan's arbitration landscape.
This Bill aims to streamline procedures, reduce court intervention, and enhance enforcement mechanisms, thereby minimizing ambiguities and promoting alternative dispute resolution mechanisms.
The Federal Cabinet has given its approval in principle to the Bill's contents and to initiate consultations with the provinces so that the said law may be enacted as an Act of Parliament.
This landmark reform is expected to significantly enhance the legal framework for arbitration in Pakistan, fostering a more favorable environment for both foreign and domestic investment.
By aligning with international best practices, the proposed Arbitration Bill, 2024, aims to boost investor confidence, reduce the likelihood of protracted legal battles, and support economic growth through efficient and reliable dispute resolution.
