PITFALLS IN THE DOMESTIC AND INTERNATIONAL COMMERCIAL ARBITRATION IN PAKISTAN

Arbitration is a well-known and increasingly popular alternative dispute resolution method. It safe, cost-effective, time-efficient The arbitration system saves both parties time money by avoiding lengthy legal proceedings. In the Indian subcontinent, has been practised for many years under name "Panchayat." Even in absence of system, Panchayat served to settle conflicts. these panchayats, decisions were made accordance with ethical standards, cultural norms, religious principles, panchayat respected held high regard. (Kumar, 2017) During British Raj (1858–1947), underwent period decline. legalized local replaced it codified law. (Hussain & Arafat, 2022) They enacted numerous regulations, leading enactment Act 1940, which governs Pakistan. Following Pakistan's independence 1947, was reinstated still widely used rural areas, where carried out norms usages. There are no provisions 1940 regarding its amendment potential harmonise country's system. (Mukhtar. 2016) Pakistan introduced international signing later implementing New York Convention 1958 enacting Recognition Enforcement (Arbitration Agreements Foreign Arbitral Awards) (International Investment Dispute) 2011. Although signed UNCITRAL Model Law on International Commercial Arbitration, not yet incorporated into domestic A stable comprehensive become necessity at current attract foreign investors other stakeholders country. However, needs improve areas arbitration, particularly enforcement recognition awards lex arbitri. (Rizwan Hussain, 2012) These challenges explained this essay using case laws.