The Arbitration Bill 2024 marks a significant step toward modernizing Pakistan’s arbitration framework, but several critical issues remain unresolved.

While the Bill is designed to replace the outdated Arbitration Act of 1940, aligning Pakistan’s laws with international best practices, it still faces several ambiguities that could undermine its effectiveness.

The Bill broadens its applicability to both domestic and international arbitration. It mandates that courts refer matters to arbitration even when the parties have agreed on a foreign venue. These steps align with the UNCITRAL Model Law and the New York Convention, promoting consistency in arbitration procedures and reducing unnecessary judicial intervention.

Notably, the Bill also supports party autonomy, allowing stakeholders to determine the seat, governing laws, language, and procedural rules. Institutional arbitration is encouraged to ensure greater reliability, and emergency arbitration is recognized, further improving the arbitration process.

However, the Bill still contains significant flaws that could hamper the transition to a more efficient arbitration system.

•One of the most pressing concerns is the tension between judicial and executive powers. The Bill grants the judiciary extensive control over arbitration, raising questions about who should ultimately oversee the system. This power imbalance could lead to inefficiencies in the long run.

• The Bill lacks clear guidance on its applicability to ongoing arbitrations under the Arbitration Act of 1940, unless agreed otherwise by the parties, hindering a smooth transition. This oversight perpetuates the inefficiencies of the old system, preventing a full shift toward the new arbitration framework.

•Another critical issue is the Bill’s failure to address the overlap with........

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