Supreme Court consults on ADR reforms to speed up banking dispute resolution

The Chief Justice of Pakistan, in his capacity as chairperson of the Law and Justice Commission of Pakistan, chaired a consultation at the Supreme Court on Thursday to address delays in banking dispute resolution caused by legal and procedural gaps, The News reported.

The meeting examined the use of Alternative Dispute Resolution (ADR) mechanisms, drawing on the Federal Board of Revenue’s experience in tax litigation, where ADR committees have been used to reduce case backlogs and speed up settlements.

Participants discussed adapting similar frameworks for banking disputes to enable faster and more predictable resolution while reducing reliance on conventional litigation.

In his remarks, the chief justice said banking litigation remains a bottleneck affecting financial discipline, credit flow and economic stability. He called for statutory reforms, streamlined procedures and institutionalised ADR systems to address delays.

The consultation focused on identifying hurdles in banking recovery processes, simplifying procedures that cause delays, strengthening ADR mechanisms tailored to the sector and improving coordination among regulators, financial institutions and dispute resolution bodies.

The meeting was attended by Supreme Court Justices Muhammad Ali Mazhar and Miangul Hassan Aurangzeb, Finance Minister Muhammad Aurangzeb, Attorney General Mansoor Usman Awan, and senior officials from the Law and Justice Division, Federal Board of Revenue (FBR), Securities and Exchange Commission of Pakistan (SECP), State Bank of Pakistan, Banking Mohtasib, Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Pakistan Banks Association, Pakistan Tax Bar Association, Overseas Investors Chamber of Commerce and Industry (OICCI), and Entrepreneurs’ Organisation Islamabad chapter.

The Law and Justice Commission will compile proposals into a reform framework for review by an expert committee. The recommendations will then be submitted to the commission for approval before being forwarded to the Ministry of Law and Justice for further action.

According to a Supreme Court statement, the consultation is aimed at advancing reforms in banking dispute resolution through ADR-based approaches aligned with legal and economic requirements.