Forging our own gavel: Pak arbitration sovereignty

2026-02-07 - 23:46

PAKISTAN is currently in a state of profound dependence in the complex, dangerous world of international commercial disputes, where the credibility of national jurisdictions and billions of dollars are frequently at stake. Almost without exception, our corporations, whether state-owned or private, are seated in London, Singapore or Dubai for arbitration, a process intended to serve as a neutral alternative to costly litigation. The tribunals are presided over by foreign arbitrators, supported by foreign counsel and governed by procedures and cultural nuances that are often alien to our business and legal landscape. It is not merely an economic leakage that this externalization of a critical aspect of commercial justice represents; it is a strategic vulnerability and a failed opportunity for intellectual sovereignty. A concerted national endeavour is necessary at priority to train and empower a world-class, robust group of Pakistani arbitrators. There are numerous consequences associated with this dependence. It is a substantial discharge of foreign exchange in terms of finance, as hard currency is used to pay substantial fees to foreign arbitrators, law firms and institutions. This results in a subtle yet substantial procedural disadvantage for Pakistani parties. International counsel is necessary to navigate the foreign protocols and cultural expectations of foreign-dominated tribunals and the cost is high; there is also a persistent risk that the nuances of Pakistan’s commercial context may not be fully understood. To break this cycle, a multi-pronged strategy is essential. The first and most immediate step is to strategically place Pakistani legal talent within the very system we seek to master. We must proactively recommend and facilitate the appointment of Pakistani arbitrators as “shadow arbitrators” or tribunal secretaries in international cases involving Pakistani parties or interests. This is not a symbolic move. An unparalleled, real-time perspective on tribunal deliberations, procedural judgments and award drafting is obtained by a shadow arbitrator who sits alongside seasoned international practitioners. It is the most rigorous and immersive apprenticeship available. The government, through its law and justice division and leading industry bodies such as the Pakistan Business Council، should mandate or strongly advocate for such clauses in major state contracts and encourage private entities to do the same. This creates a pipeline of practical, global experience. Simultaneously, we must look inwards and build institutional capacity. It is imperative to identify and designate a select group of top-tier Pakistani law firms and chambers as national centres of arbitration excellence. These firms should be incentivized, through potential panel appointments for state work or supportive policy to invest seriously in in-house arbitrator training programs; CIArb Pakistan branch can be a great support in ensuring the same. The goal is to create firms that not only practice arbitration law but also cultivate arbitrator talent as a core part of their mission or to assign the same responsibility to the CIArb Pakistan Branch with a clear mandate from the Ministry of Law. A coherent national roadmap is vital for this endeavour. The journey must begin with a high-level task force comprising representatives from the Ministry of Law & Justice, the Supreme Court, the Pakistan Bar Council, CIArb Pakistan Branch head, leading universities and the corporate sector. This task force should have a clear mandate: to draft a five-year National Arbitration Capacity Building Plan and a roadmap for its execution. The first year of this plan must focus on “The Foundation.” This involves developing a curriculum in partnership with international institutions such as the ICC and UNCITRAL to create a standardized Pakistan-specific arbitrator training module. Concurrently, we must ensure that the new Arbitration Act is fully aligned with the Model Law. We must have a national database of Pakistani lawyers with arbitration potential, categorized by sector expertise (construction, energy, finance, mining or a combination of these). The second and third years would be the phase of “Immersion and Exposure.” Here, the shadow arbitrator programme must be implemented as a priority on state contracts. Furthermore, we must host, not just attend. Pakistan should bid to host major international arbitration conferences and workshops, thereby bringing the global community to our region and showcasing our talent. Our designated law firms would launch their flagship training cohorts during this period. The final two years would aim for “Integration and Leadership.” By this stage, trained Pakistani arbitrators should begin appearing as sole arbitrators or co-arbitrators in international cases under institutional rules. Pakistani courts, for their part, must continue their commendable pro-arbitration trajectory, earning a reputation for reliable enforcement of awards and minimal intervention. This judicial support is the bedrock upon which party confidence is built. Ultimately, the roadmap’s success will be measured by Pakistani parties confidently opting to sit in arbitration seats in Pakistan, before tribunals led by Pakistani arbitrators, supported by Pakistani institutions. This is more than a legal reform; it is an exercise in economic self-reliance and intellectual confidence. The gavel of decision-making in disputes that shape our economic destiny must, increasingly, be held by hands that understand the texture of our society, the challenges of our economy and the aspirations of our people. Building a sovereign pool of arbitrators is not about rejecting global standards, but about mastering them and contributing to them from a position of strength and equality. By investing in our people today, we secure not just better outcomes for our disputes tomorrow, but a respected seat at the high table of international commercial justice. —The writer is an international law expert and an internationally accredited arbitrator and mediator. (shozab2727@gmail.com)