THE AUTHOR:
Faisal Ali Rana, Advocate at the Lahore High Court
The traditional way of resolving commercial disputes through courts is increasingly being replaced in Pakistan by alternative mechanisms, such as mediation, for their faster and more efficient resolution. The introduction of the Alternative Dispute Resolution Act, 2017 (the “ADR Act”) and the provincial legislation in each province have encouraged a pro-mediation approach for faster resolution of disputes. Pakistan’s difficulty, however, lies in the recognition and enforcement of settlements reached through international mediation. This gap was partly resolved by Pakistan’s adoption of the United Nations Convention on International Settlement Agreements Resulting from Mediation, commonly known as the Singapore Convention on Mediation (2018) (the “Singapore Convention”). Pakistan entered this emerging international framework by signing the Singapore Convention on 23 May 2025. Yet, as of the date of adoption, Pakistan, being a dualist country, has not ratified the Convention for its implementation.
The importance of the Singapore Convention for Pakistan extends beyond the technical enforcement of mediated settlements. It has broader implications for the country’s commercial environment, economic activity, and ability to attract and retain foreign investment. In an increasingly interconnected global economy, businesses consider the availability of efficient, predictable, and enforceable dispute resolution mechanisms when deciding where to invest, establish operations, or enter long-term commercial relationships.
How Pakistan Entered the Singapore Convention?
Pakistan’s entry into the Singapore Convention came through the judgment of the Supreme Court of Pakistan (2025 CLD 150), where Justice Syed Mansoor Ali Shah held:
“From a global perspective, the value of mediation as a method of amicably resolving disputes has been recognized in various international legal instruments, including the United Nations Convention on International Settlement Agreements Resulting from Mediation, known as the “Singapore Convention on Mediation”. The Convention provides a uniform and efficient framework for the recognition and enforcement of mediated settlement agreements that resolve international commercial disputes – akin to the framework that the 1958 New York Convention provides for arbitral awards. To date, the Convention has 57 signatories, while only 12 states have ratified the same. To promote efficiency and align with the principle that ‘in the future, it is likely that the traditional trial will be the exception rather than the rule it is recommended that Pakistan becomes a signatory to the Convention. This will not only reduce the alarming backlog statistics through enhancing faster access to justice but will also serve as a turning point towards a comprehensive and profound transformation of the legal and judicial system”.
A copy of this judgment was sent to the Attorney General of Pakistan for consideration of implementing this paragraph of the judgment with relevant authorities. This led to Pakistan signing the Singapore Convention weeks after attending the Singapore Convention Week.
Why Ratification Matters for Pakistan?
Pakistan seeks to attract foreign investment, expand international trade, and integrate its business more effectively into commercial markets (See, Muhammad Faisal Hayat, Hon. Justice M. Nawaz Wahla (Ret.), ‘Pakistan’s Mediation Shift: Implementing the Singapore Convention’, 06 August 2025, Kluwer Mediation Blog). The availability of a reliable dispute-resolution mechanism is an important component of investor confidence. For an international investor, the ability to resolve a dispute through mediation is useful only if the resulting settlement can be enforced effectively. Let us consider a hypothetical dispute between a Pakistani manufacturer and a foreign purchaser. The parties may prefer mediation because they wish to preserve their commercial relationship. They reach a settlement in a foreign jurisdiction. If the Pakistani party subsequently fails to perform, the foreign party requires a system for enforcing that settlement. Without an applicable international framework, the enforcing party may be required to rely upon domestic contractual principles and potentially commence separate proceedings. This introduces uncertainty, cost, and delay. Ratification of the Singapore Convention would signal that Pakistan accepts the principle that properly mediated international commercial settlements deserve a predictable enforcement mechanism. The importance of this objective is increasingly recognised by Pakistani institutions. The Ministry of Law and Justice has established the International Mediation and Arbitration Centre (“IMAC”) and has described its objectives as promoting ADR and legal commercial certainty. These steps are important for ADR reform and investor confidence.
Pakistan’s Existing Legal ADR Framework
The ADR Act was enacted to provide a mechanism for resolving disputes outside conventional adjudication. It applies to the Islamabad Capital Territory and expressly includes mediation, conciliation, and arbitration within its definition of ADR. There are also provincial ADR legislations, but the existence of these legislations should not be confused with the implementation of the Singapore Convention. The two instruments serve different purposes: the ADR Act facilitates ADR within the Pakistani legal system. The Singapore Convention, in contrast, applies to international settlement agreements resulting from mediation and their recognition and enforcement in state parties. This distinction creates a legal gap.
Existing Recognition and Enforcement of International Arbitration in Pakistan
Pakistan’s experience with international arbitration provides an important foundation for understanding why the Singapore Convention could be commercially significant. Pakistan is a party to the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958) (the “New York Convention”), and Parliament enacted the Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act, 2011, to provide a domestic mechanism for enforcing foreign arbitral awards. The 2011 Act extends to all of Pakistan and confers exclusive jurisdiction on the High Courts over matters arising under it. The significance of this framework is that it provides international commercial parties with a relatively clear legal route for enforcing foreign arbitral awards in Pakistan (See, Saqib Majeed, ‘Enhancing enforcement of international arbitration agreements and foreign arbitral awards in Pakistan: a positive shift’, 12 December 2023). Pakistani courts have subsequently developed a generally pro-enforcement approach, particularly by limiting judicial intervention at the enforcement stage and treating grounds for refusal as narrowly defined. Pakistan’s arbitration experience therefore demonstrates that treaty commitments become economically meaningful when accompanied by domestic implementing legislation and consistent judicial enforcement.
Domestic Reforms in Pakistan
Pakistan’s approach to the Singapore Convention should be accompanied by clear legislation and pro-enforcement measures, which could make mediation a credible additional mechanism for resolving international commercial disputes. The Singapore Convention should not be viewed as a substitute for arbitration in Pakistan, but as a complement to it, providing businesses and investors with another reliable mechanism through which cross-border commercial disputes can be resolved efficiently in the country.
The principal weakness in Pakistan’s present position is the absence of a clear legislative bridge between the Convention and domestic judicial enforcement. Signature alone would not answer every practical question arising before Pakistani courts. Domestic legislation would be necessary, or at least highly desirable, to clarify how the Convention should operate within Pakistan’s procedural and institutional framework (See, Muhammad Asim Rafiq, Muhammad Abu Bakar, ‘Unlocking the Cross-Border Potential of Mediation: Ratifying and Implementing the Singapore Convention in Pakistan’, June 2025, ResearchGate Net Publication). The legislation should consider the question of jurisdiction:
- Which court should hear the application for the enforcement of an international mediated settlement?
- Should jurisdiction be concentrated in the High Courts, conferred on specially designated courts, or distributed across courts of ordinary civil jurisdiction?
The legislation should provide details about the documents that must accompany an application and the grounds upon which relief may be refused. Pakistani courts would require clear guidance concerning the relationship between these grounds and domestic concepts such as public policy, contractual validity, and procedural fairness. The important consideration that the legislation needs to make is that the existing laws, such as the ADR Act 2017, contract law, civil procedure, evidence law, and existing arbitration legislation, must be made to operate coherently with the Convention.
The Proposed Road Map for Pakistan
Pakistan should adopt a structured approach rather than simply proceeding from signature to ratification. The important step is to analyse the legislative gap; for this, the Ministry of Law and Justice should identify areas of incompatibility or uncertainty between the Convention and existing Pakistani legislation. Currently, the Pakistani Government is preparing a bill to implement the Singapore Convention, but the important consideration that the government has to make is that the bill should not be a verbatim copy of the Convention and should focus on ensuring the implementation of international mediation within the framework of the Pakistani legal system (See, H. Ullah, ‘Pakistan and the Singapore Convention on Mediation: From Signature to Implementation’, ISSRA, 27 November 2025).
Pakistan should consider dedicated legislation governing international mediation settlement agreements and designate special courts to expedite the enforcement of such agreements. This should clarify jurisdiction, procedure, evidentiary requirements, and the relationship between the Convention proceedings and existing domestic mediated settlement agreements. Pakistan should also strengthen its professional competence by accrediting qualified mediators in order to build international business confidence in the legal system. Moreover, integration of domestic mediation centres with international mediation networks would assist Pakistani businesses in accessing qualified mediators and international parties in developing confidence in Pakistan’s mediation infrastructure. Lastly, the Convention serves as a commercial boost for the country; therefore, banks, exporters, construction companies, technology businesses, multinational corporations, and legal practitioners should participate in the reform process.
Conclusion
Pakistan’s signature of the Singapore Convention marks an important development in the global arena for the enforcement of international mediated settlements, but this position is incomplete without ratification through proper legislation. This requires a coordinated legislative reform, judicial preparation, institutional development, and stakeholder consultation. This approach would help Pakistan boost investor confidence and economic growth.
