Arbitration in Pakistan: Challenges in the Digital Era

Abstract

Arbitration is an active means of deciding disagreements at the grassroots level, and like other countries of the world, the scope of arbitration is quite wide in Pakistan as well. Generally, the following disagreements/clashes are resolved through arbitration. Disputes relating to the construction work, disputes relating to the business affairs and corporate disputes and family disputes. The following laws deal with meeting the requirements and resolving the above-stated disputes. The arbitration act 1940 and the recognition and enforcement (arbitration agreements and foreign arbitral awards) act, 2011. The latter is simply a ratification of the New York Convention through which foreign judgments and awards between the nationals of contracting states are liable to be enforced without questioning the validity of the same, with the exception explicitly given in the convention. To what extent will the upcoming legislative process be effective in playing a role in facilitating the arbitration, in the era of modernisation and digitalisation, and what further measures are necessary to meet the challenges ahead? This article discusses it in light of the decision of the superior courts. This has been done by following the methodologies of historical records and existing published case laws from Pakistan Legal Decisions (PLD) regarding arbitrary decisions. The article thus contributes to the crucial matter of modifications in the arbitration practices to meet the standards of modernization and digitalization.