MECHANISM FOR ENFORCEMENT OF ARBITRAL AWARDS IN PAKISTAN

Abstract

The execution of the awards in Pakistan remains a contentious subject especially on international arbitration. Thus, despite the Pakistan’s adherence to New York Convention according to which the foreign arbitral awards should be recognized and enforced, several issues remain problematic because of the legal, procedural as well as interpretational uncertainties. This paper examines the process of the enforcement of domestic and foreign arbitral awards in Pakistan with reference to the judiciary and the Arbitration Act of 1940 and Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act of 2011. That is why a critical evaluation of references reveals systemic problems like over centralization of decision making, an ambiguous definition of “public policy”, and numerous tactics to slow down the process. This paper also analyses how BITs and ISDS contracts of Pakistan affect the arbitration results regarding its international investments. Based on a comparative analysis of Pakistan’s practices with international benchmarks, this research places forward recommendations that seek to increase the effectiveness of the enforcement of arbitral awards and facilitate Pakistan’s development as an arbitration-friendly jurisdiction.