High-level push for mediation laws

High court justices, regulators, economists, and business leaders are spearheading the promotion of case resolution through ‘mediation’ laws to expedite the justice system. Lengthy litigation processes have caused justice delays, resulting in millions of pending cases, especially among businesses, and posing obstacles to attracting foreign investment in Pakistan.

During a seminar titled ‘The Mediator’s Magic – Transforming Conflict into Collaboration,’ organised by the Institute of Business Administration International Centre for Alternative Dispute Resolution (IBA ICADR) Centre of Executive Education (CEE) on Friday, speakers stressed on replacing the current litigation-based dispute resolution system with mediation to accelerate justice affordably.

The current litigation system has kept many business cases pending for extended periods, prompting foreign investors to express concerns about the state of justice in Pakistan due to delayed resolutions. IBA Emeritus Professor Dr Ishrat Hussain stated that courts are burdened with over 2.5 to 2.6 million cases, primarily at the district level. The workload assigned to superior courts like the high courts and the Supreme Court exceeds their capacity.

“The complexity of commercial, contract, taxation, and banking laws is increasing over time.”

We possess the necessary tools and instruments and must collaborate. IBA’s initiative aims to partner with esteemed institutions like those in Singapore, New York, and the United Kingdom to train individuals in mediation, conduct research, establish mediator panels, and closely coordinate with the judicial community.

Law Development Programme, Department of Commerce, USA (CLDP), Deputy Chief Counsel, Zmarak Khan, highlighted mediation and other alternative dispute resolution (ADR) mechanisms as crucial for resolving disputes. They complement the formal judicial process, enhancing court system efficiency by reducing case backlogs.

Commercially, ADR facilitates quicker, more cost-effective contract enforcement, while non-commercially, it enhances access to justice.

Efficient, effective, and transparent contract enforcement is essential for facilitating commercial activities and attracting investments in every country. Foreign investors perceive dispute resolution in Pakistan as inefficient. However, institutions like ICADR play a commendable role in providing essential dispute resolution services for Pakistan’s people and businesses.

The United States government heavily invests in ADR (mediation) in Pakistan. Therefore, a robust dispute resolution mechanism is vital for attracting investments and fostering commercial activities, contributing to overall economic development in Pakistan and benefiting American businesses like Marriott, Hilton, Microsoft, Google, Apple, MasterCard, Visa Card, and others operating in Pakistan.

Justice Miangul Hassan Aurangzeb of the Islamabad High Court advocated for mediation over litigation, highlighting the need for party agreement for mediation to proceed. He highlighted the role of mediators as neutrals and stressed the importance of making disputing parties aware of available mediation laws, encouraging them to seek mediation before resorting to litigation and attorney fees.

Justice Yousuf Ali Sayeed of the Sindh High Court noted that despite a significant increase in population, the number of judges has remained unchanged for years, burdening the courts. He called for the promotion of mediation culture and raised awareness among the general public about mediation, lamenting the lack of information from lawyers regarding available mediation laws.

Justice Jawad Hassan of the Lahore High Court mentioned that relevant laws have been available in the country since 1940, yet only 46 cases have undergone mediation or arbitration.

Founded in 2019 based on the Harvard Negotiation Project, the IBA Dispute Resolution Forum (IBA-DRF) at the Centre for Executive Education (CEE) aims to offer ADR services to alleviate the burden on Pakistan’s court system.

Published in The Express Tribune, May 5^th, 2024.

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