Pakistan’s legal system is overburdened. For its residents, who are often dealing with at least two million unresolved cases, some of which have been pending for decades, justice can seem cumbersome, costly, and delayed. Since then, the judicial system that was in place in the past has been unable to handle increasingly complex cases and a rapidly expanding population. In this context, arbitration and other forms of alternative dispute resolution are essential to restoring the balance of Pakistan’s legal system, not only a backup plan.
The goal of alternative dispute resolution (ADR), which combines mediation, conciliation, and arbitration, is to resolve conflicts more successfully than through legal action. Because it places a strong emphasis on communication, compromise, and quickness, it is relevant to Pakistan. Under ADR, cases that could ordinarily continue to drag out in court proceedings could be resolved much more quickly. The overburdened Pakistani judiciary desperately needs a way to deliver results more quickly.
Arbitration is one such strategic aim in ADR. The latter is widely acknowledged as a successful means of resolving business conflicts with the efficiency, neutrality, and privacy that businesses seek. But when it comes to integrating arbitration into its dispute resolution culture, Pakistan has fallen behind. Both domestic and international businesses are becoming more reluctant to enter into agreements that could result in drawn-out legal challenges. Therefore, increasing arbitration is necessary to guarantee economic credibility as well as to reform justice.
Cost is a crucial component of this equation. In Pakistan, the process is costly; fees, court costs, and numerous adjournments sometimes make justice unattainable for the common person. Arbitration and other ADR methods are an alternative. ADR reduces process delays and impediments, saving time and resources. Arbitration is a method that can save a family with a property issue or a shopkeeper with a disagreement with a supplier from the expense of spending years in court. The reduction in the cost of justice is crucial in enabling communities that would otherwise be marginalized to obtain justice.
It’s also important to note that Pakistanis are not unfamiliar with out-of-court settlements. Jirgas and panchayats have been used by the communities to resolve conflicts for generations. Even while these conventional systems have flaws, they do show that there is a societal tendency toward simple and accessible justice. This insight is the foundation of modern alternative dispute resolution (ADR), which is structured, fair, and open rather than informal. In this sense, arbitration is a combination of Pakistani culture and the requirements of the modern legal system.
Arbitration serves considerably more purposes than just reducing court overcrowding. Pakistan should provide reliable ways to resolve business disputes if it wants to attract investments and foster economic growth. Investors, whether domestic or foreign, cannot take the chance of having to wait years for a judicial decision. An efficient arbitration system is a sign that Pakistan understands business needs and is prepared to support company operations predictably and efficiently. This is crucial to creating a stable and welcoming climate for investors.
For populations that typically struggle to navigate the formal legal system, alternative dispute resolution (ADR) enhances access to justice. Due to societal pressures, financial constraints, or the adversarial legal system, women and other underrepresented groups face inhibitions in traditional courtroom settings. These groups find that arbitration and mediation, which have more laid-back and non-threatening procedures, allow them to express themselves more freely. ADR helps parties find solutions to delicate problems, such as family disputes, through talk rather than confrontation, allowing them to maintain relationships while resolving disputes.
To make arbitration one of the primary pillars of justice, Pakistan would need to implement strict and well-considered reforms. The nation’s legal system does not meet the demands of the modern world. The 1940 Arbitration Act, which was abandoned during colonial administration, needs to be replaced right now because it does not meet international standards. Having specialized ADR centers with personnel trained to deliver dependable and consistent services is also crucial. Additionally, the courts have a significant role to play. Judges must understand that alternative dispute resolution (ADR) is a partner rather than an adversary of justice. The courts will save themselves the needless strain and focus on situations that truly require a court of law by sending those cases that ought to be handled through arbitration or mediation.
There is already encouragement of a development-friendly tendency. Prominent judges are also promoting mediation and referring cases to alternative dispute resolution. While privately owned centers in Karachi and Lahore are expanding access to ADR services, court-based annexed mediation centers have been established in Quetta and Islamabad. An increasing number of Pakistanis are also pursuing formal training in arbitration and mediation, which improves the nation’s capacity to resolve conflicts. These are encouraging indicators, but in order to have a lasting impact, they must be expanded upon and integrated into a single national system.
Today, the nation faces a choice between continuing to rely on a court system that is overburdened with cases or using alternative dispute resolution (ADR) in general and arbitration in particular as a means of achieving better and more accessible justice. The courts cannot be the only source of redress, but they will never be eliminated.
In Pakistan, justice is something that will only be achieved in the future, and its solutions must be fair, quick, and communicative. ADR is the impetus Pakistan needs to establish a judicial system that genuinely benefits people, not a substitute for courts.
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Lahore.