Pakistan, US explore ADR system to streamline corporate dispute resolution

Pakistan and the United States have held talks on establishing a dedicated Alternative Dispute Resolution (ADR) Centre in Pakistan to handle corporate and financial disputes, with reference to international best practices such as Singapore’s Financial Industry Disputes Resolution Centre (FIDReC) model, according to a statement by the Securities and Exchange Commission of Pakistan (SECP).

The discussions took place during a visit by a delegation from the Commercial Law Development Program (CLDP) of the US Department of Commerce to the SECP’s offices in Islamabad.

Both sides explored cooperation on developing mechanisms for early and out-of-court resolution of corporate disputes to improve the business environment and boost investor confidence in Pakistan. The model under consideration includes structured mediation and adjudication processes aimed at resolving financial and commercial conflicts more efficiently.

SECP officials briefed the US delegation on the commission’s mandate, regulatory framework and its supervisory role across Pakistan’s financial sector.

Muzzafar Ahmed Mirza, Commissioner (Law) at the SECP, outlined the regulator’s ongoing and previous initiatives to promote alternative dispute resolution, including existing mechanisms such as the Small Dispute Resolution Committee in the insurance sector, and the regulator’s vision for expanding ADR frameworks within the corporate and financial sectors.

Dr Kabir Ahmed, Chairman of the SECP, said effective ADR mechanisms could reduce the burden on courts by resolving disputes in a timely manner, lower costs for businesses and improve the ease of doing business. He reaffirmed the SECP’s willingness to work closely with the CLDP to advance ADR reforms in Pakistan.

The CLDP delegation was led by Zmarak Khan, Deputy Chief Counsel, and included Alexa Black, International Program Specialist; Aleena Nasir, Attorney Advisor; Emily Rife, Senior Partner, CLDP; and Dave Moora, Senior Partner at Impact Associates.