PAKISTAN AND THE NEXT CHAPTER OF DISPUTE RESOLUTION
FROM ADR REFORM TO ADR CONFIDENCE
BY : BARRISTER FAHID VERYA
There are moments in legal development when an institutional event deserves to be welcomed not merely for what it represents today, but for what it makes possible tomorrow. The participation of the Supreme Court of Pakistan in the Judicial Dispute Resolution Symposium in Istanbul on 4–5 May 2026 is, in my view, one such moment. The symposium, organised by the Commercial Law Development Program (CLDP) of the U.S. Department of Commerce in partnership with the Istanbul Arbitration Centre (ISTAC), brought together senior judges, legal experts and judicial academies to examine court annexed ADR, judicial support for arbitration and mediation, and the recognition and enforcement of foreign arbitral awards. Justice Miangul Hassan Aurangzeb represented the Supreme Court of Pakistan. This engagement deserves recognition But it also invites a larger legal queestion: What would it take for Pakistan not merely to have ADR mechanisms, but to develop genuine confidence in them?
Pakistan already has the legislative foundations The answer cannot begin with the proposition that Pakistan lacks an ADR framework. It does not. The Alternative Dispute Resolution Act, 2017 (Act XX of 2017) expressly recognizes ADR and provides a framework for referral of specified civil disputes in the Islamabad Capital Territory. Section 3 adopts a significant policy approach: on the first date after appearance of all parties, specified civil matters are to be referred to ADR, subject to defined exceptions including lack of consent, the absence of a reasonable prospect of settlement, or an intricate question of law or fact. The Schedule extends to matters including commercial disputes, contractual cases, company and banking matters and insurance disputes.
FROM ADR REFORM TO ADR CONFIDENCE
The legislative architecture has also developed beyond the ICT framework. Pakistan now has provincial ADR legislation, including the Punjab Alternate Dispute Resolution Act, 2019, while the federal framework has subsequently been supplemented by accreditation rules and mediation accreditation rules. The Ministry of Law and Justice currently identifies these instruments as part of Pakistan’s ADR framework. International arbitration has a separate but equally important foundation. Pakistan enacted the Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act, 2011, expressly to provide for recognition and enforcement of arbitration agreements and foreign awards pursuant to the New York Convention. Pakistan’s ratification of the Convention took effect in October 2005. The New York Convention now has 172 parties. In other words, the legal language of international award enforcement is no longer peripheral to international commerce; it is part of the architecture within which cross-border businesses routinely allocate dispute risk.
The scale of the problem makes ADR consequential.
The need for effective dispute-resolution alternatives is not theoretical. The Law & Justice Commission of Pakistan’s judicial statistics recorded 2,221,512 pending cases nationwide as at 30 June 2024, of which approximately 1.82 million—around 82%—were pending before the District Judiciary. Yet the more recent picture also deserves recognition for its positive direction. The National Judicial (Policy Making) Committee reported that, between 1 September 2025 and 31 May 2026, the District Courts disposed of 1,319,390 prioritised cases, against reported pendency of 1,219,048 cases in the categories covered by its timelines regime. The figures demonstrate that judicial reform is not merely a policy aspiration; significant institutional work is already taking place. This distinction matters. ADR should not be presented as a remedy for an unsuccessful judicial system. Rather, a modern justice system should be capable of directing different disputes towards the mechanism most capable of resolving them fairly, efficiently and authoritatively.
THE INTERNATIONAL MARKET HAS ALREADY MOVED CONSIDERABLY FURTHER
The scale of international dispute resolution illustrates why this matters for Pakistan’s commercial future. The ICC registered 881 new arbitrations in 2025, involving 2,531 parties from 147 jurisdictions. Its pending caseload at year-end represented approximately US$299 billion in disputes. ICC’s International Centre for ADR also received 36 mediation requests during the year. These figures are not merely institutional statistics. They reflect a commercial reality: businesses increasingly regard dispute resolution as part of transaction design. Choice of forum, governing law, arbitration agreement, seat, institutional rules, interim relief and enforcement are often considered before a commercial relationship begins—not after it fails. For Pakistan, this creates an opportunity. The real test is confidence. The next stage of ADR development should therefore be measured not simply by the number of ADR centres, laws, rules or referrals. The deeper measure is confidence. Will commercial parties trust the process? Will courts consistently respect valid arbitration agreements? Will judicial intervention remain principled and proportionate? Will foreign awards receive predictable treatment? Will mediators and arbitrators have the professional training and institutional credibility necessary for sophisticated disputes? Will commercial counsel understand when mediation is preferable to arbitration, when arbitration is preferable to litigation, and when litigation itself is indispensable? These are ultimately questions of legal culture as much as legislative design.
Pakistan has an opportunity to develop, not merely import, best practice.
This is where I believe the conversation should become more ambitious. Pakistan should certainly learn from jurisdictions with mature ADR ecosystems. But comparative law should not become an exercise in transplantation. Pakistan has its own constitutional structure, statutory framework, commercial realities, judicial culture and institutional needs. The objective should therefore be to develop a Pakistan ADR model that is domestically credible and internationally intelligible. That requires legislation, yes. But it also requires jurisprudence. It requires trained practitioners. It requires credible institutions. It requires informed commercial users. And it requires a judiciary capable of providing the right degree of support, supervision and restraint. The opportunity before us. The Supreme Court’s participation in Istanbul is therefore welcome not simply because Pakistan was present at an international ADR forum. It is welcome because it places Pakistan within an increasingly important global conversation about how justice should be delivered in a commercial world where disputes routinely cross borders and where time, enforceability and commercial continuity can be as important as the ultimate merits of a claim.
THE REAL CHALLENGE
The challenge now is to convert dialogue into durable institutional confidence. If Pakistan can align legislative reform, judicial jurisprudence, institutional capacity and professional expertise, ADR can become more than an alternative route around the courts. It can become an integral part of Pakistan’s justice-delivery architecture and international commercial infrastructure. That, in my view, is the more important conversation that should follow Istanbul.
About the Author
Fahid Rafique Verya is a Barrister and Accredited International Mediator – SoM 218, Strand, London, who has been practicing law at different courts in Pakistan and in some foreign jurisdictions since 2009. He is the Founder and C.E.O. of Fahid Verya Law Group (Advocates & Legal Consultants), registered as FVLG Law Firm at SCCI, which has been providing efficient legal services to its clients since 2011.
