"ARBITRATION - PAKISTANlaws have been implemented in wider horizon as they cover every stages of arbitrationstarting with the agreement to arbitration, its composition, court? intervention and the arbitral6 tribunal jurisdiction . According to Article 2 of the UNCITRAL Model Law arbitration isinterpreted for the purpose of the law as, “arbitration, means any arbitration whether or not7 administered by the permanent arbitral institution.”The decision or settlement made in the process of arbitration is made by the neutral appointedindividual arbitrator in form of Award. This award is ultimate and obligatory on the parties.Consent from the parties is not required for binding of the award. The enforcement of this8 award is made either through the Domestic Arbitration Laws and the New York Convention.Pakistan for a greater period has been implementing the arbitration method for resolvingcommercial disputes both domestically and internationally but under the Geneva Convention.Pakistan being a developing nation has had an unstable economy. There is an essentialrequirement for gaining stability in the economy, which can be achieved by increasing the9 foreign investments and increasing the commercial practices in the country.The aims and objectives of the dissertation are:? Understanding the arbitration procedure followed by Pakistan prior to theenforcement of the New York Convention,? Understand evolution of arbitration in the nation from historical stage to recentdevelopment,6UNCITRAL Model Law on International Commercial Arbitration (1985), with amendments as adopted in 2006, UNCITRAL;http://www.uncitral.org/uncitral/en/uncitral_texts/arbitration/1985Model_arbitration.html; 7UNCITRAL Model Law on International Commercial Arbitration 1985, with amendments adopted in 2006, United Nations Publication,ISBN 978-92-1-133773-0; (accessed on 6 June, 2015)8Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958) (the "New York Convention");http://www.uncitral.org/uncitral/en/uncitral_texts/arbitration/NYConvention.html 9Hussain Rashid, RESOLVING COMMERCIAL DISPUTES THROUGH ARBITRATION AND ADR IN PAKISTAN, (Center for Energy,Petroleum and Mineral Law Policy press), University of Dundee, p. no. 4;Page 6 ARBITRATION - PAKISTAN? The pit-falls in the measures and recommendations made for improving the standardsof arbitration procedure of resolving commercial and trading related disputes,? To analyze whether the process of arbitration is more effective in developing nation?slike Pakistan due to its political and economic conditions,? Measures to improve the publicity of the arbitration process in Pakistan,? Circumstances of filing and enforcing foreign award,? The need for implementing the requirements of the New York Convention forenforcing the foreign award,? Whether the award declared under the 1958 Convention is more effective or not,Before advancing further in analyzing the research work of different authors that would helpin proper flow of the dissertation it is essential to understand in brief about the process oflitigation and the reason for parties still opting for this process over arbitration in Pakistan, itis based on this reason further chapters of dissertation will help us in understanding thechallenges of the government for implementing the process of arbitration in the nation.LITIGATION AS DISPUTE RESOLUTIONAs we have understood the judiciary system and the law governing it we continue further inunderstanding the most common method used for resolving dispute in Pakistan that islitigation. The most commonly and widely used procedure in Pakistan is the litigationprocedure that is the court proceedings for resolving disputes. Under this process the need ofapproval from all the parties to the contract is not essential; any party to the contract caninitiate the procedure. With the aim to decide the issue rather than providing settlementbetween the parties the process of litigation is not controlled by the parties to the contract as10 in Arbitration but is controlled by rules and procedures laid in the codified sections of laws.10Code of Civil Procedure 1908, Part I Page 7 ARBITRATION - PAKISTANLike all other nations even Pakistan suffers from limitation of resources and funds forestablishing an effective judicial system. It can be easily understood that the judicial systembeing the most important organization of the state like in any other developing nation ischallenged with limited resources such as limited judicial officials and their appointments dueto lack of essential funds. It is at this juncture the need for an alternative procedure forproviding immediate solution to commercial disputes is essential and this lays pavement tothe introduction and publicity of the Arbitration procedure for resolving the commercialdisputes. Pakistan, has also taken measures to implement the ADRs for resolving thecommercial disputes in an effective and faster way which would be discussed in the comingchapters.Litigation to a greater extent remains one of the principle methods for resolving disputes ofany form in Pakistan, as the arbitration process under the Arbitration Act, 1940 has beenviewed to be inefficient and a wearisome procedure. However, introduction of new laws such11 12 as the REA Ordinance and REA Act and the Arbitration (International InvestmentDisputes) Act 2011, have paved way to the sustenance of the procedure for resolvingprimarily the commercial disputes. Thus, the method of arbitration has started gainingmomentum for resolving international commercial disputes.LITERARY REVIEWSFor further effective analysis of a dissertation, literary reviews are included that effectivelygrab the interest of the reader in providing an understanding in detail of the process ofArbitration in Pakistan from the time of its existence until its recent developments. Theimportant contributions include the works of Shahid Irfan Jamil who states in his articleInternational Commercial Arbitration in Pakistan stated that irrespective of the process of11Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Ordinance, 2005 12Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act, 2011 Page 8 ARBITRATION - PAKISTANlapse of the ordinance as per the Pakistan governance, the nation had taken many measures tosustain the execution of the NY Convention especially by propagating an ACT of theNational Assembly. In the article the writer continues elaborating and criticizing the impactand benefits of Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral)Awards where he states that any act that has been implemented for continuing efforts of theGovernment for increasing pro-investment are interpreted as pro-arbitration. The author alsocriticizes provisions of Recognition and Enforcement (Arbitration Agreements and ForeignArbitral) Awards Ordinance, 2005 that have not clearly stated what actually constitutes a„foreign award? under the nation?s law. Thus, with the help of this article we can lay focus onsome of the effective and ineffective measures taken by the Government for sustaining the13 application of NY convention in Pakistan and also the Draft Arbitration Act of 2005.Secondly, a literary review that helps in effective flow of the dissertation is the study ofSalman Ravala in his article Alternative Dispute Resolution in Pakistan. In this article theauthor focuses on history of arbitration in Pakistan and also focuses on different ADRsenacted in Pakistan for resolving commercial disputes primarily concentrating on investmentsinternationally and trade related disputes. Being one of the effective beginners guide forresearchers on the arbitration proceedings in Pakistan this article helps us to focus in detail onthe constitution of Pakistan by further focusing on details such as the different internationaltreaties and conventions that have been implemented by the nation. This article will help theflow of our dissertation by acting as a gateway to different resources on arbitration andimplementation of arbitration award in Pakistan. It helps in highlighting the views of different14 scholars on this topic.13Shahid Irfan Jamil, International Commercial Arbitration In Pakistan, Navigating Between The New York Convention And The DraftArbitration Act 2005, November, 2005; http://jamilandjamil.com/wp-content/uploads/2010/11/papericc.pdf; (accessed on 19 June, 2015)14Salman Ravala,Alternative Dispute Resolution in Pakistan, GlobalLex, May/June 2008;http://www.nyulawglobal.org/globalex/Pakistan_ADR.htm; (accessed on 19 June,2015) Page 9 ARBITRATION - PAKISTANNext important literary review is the work of Ashtar Ausaf Ali, Nida Aftab and Asad RahimKhan in their book Pakistan – Litigation and Dispute Resolution, where the scholars have inuniform put efforts in explaining the integrity and constituency of Pakistan, they have putefforts in explaining the legal system and the procedure in Pakistan by putting more emphasison the court proceedings followed the effective independent judiciary system in Pakistan. Theliterature gives importance to Article 4 of the Constitution that embodies the „doctrine of ruleof law.? Their literature would help the reader to grasp important governance details ofPakistan in the dissertation. The chapters explain in brief on the enforcement of judgment oraward and the cross-border ligation in Pakistan stating that party those have received aforeign judgment has the freedom to enforce it in Pakistan under section 44A of CivilProcedure Code as these judgments are only executable as per the provisions under thissection. Thus, this study will help in emphasizing on the topic of discussion in thedissertation that is the enactment of the foreign arbitral award in Pakistan which has to beenforced as per the provisions of the law enacted in the nation. This literature will also helpus in understanding the different international conventions and the ordinances the nation haspassed for regulating the use of arbitration for commercial disputes primarily at theinternational level. The study has not just aimed in providing information on the litigationand court procedure in Pakistan but also the arbitration proceeding. Thus, it is also helpful oncomparative grounds and for explaining the evolution of arbitration in Pakistan and the15 approach of courts towards the same.The other contributions include the research of Ijaz Ali Chishtiin his works Enforcement ofForeign Arbitral Award in Pakistan where author states that three important ways forimplementing the foreign arbitral award and also states the different challenges that are beingfaced by the governments of different nations for implementing the foreign arbitral award. He15Ausaf Ali, Nida Aftab and Asad Rahim Khan, Pakistan – Litigation and Dispute Resolution, Third Edition, Global Legal Insights;(accessed on June 19, 2015) Page 10 "