"ARBITRATION - PAKISTANThus, from the above information it can be presumed that to improve its image in the field ofinternational agreement and international investments it needs to overcome above statedchallenges and additionally, the nation must also note that in course of propagating the lawsof international arbitration it is essential to take required measures to safeguard public policyand also not make any decisions that would affect policies of the nation. Therefore, with thehelp of below recommendations or suggestions the nation can develop the position ofinternational arbitration and enactment of foreign award in the nation.III.II RECOMMENDATIONSAfter note on the different challenges the nation is facing in regards to development ofinternational arbitration it is essential that with effective measures this position can bedeveloped, thus below are some effective recommendations for improving the position ofinternational arbitration and enforcement of the foreign award in Pakistan. 1. The need to modernize the law in Pakistan in a way that it is in harmony with theEnglish Law. Modernizing the law of arbitration in the country will help in keepingthe law in line with the English Arbitration Laws. The reason for the country to dwellwithin the lines of English law as the English jurisdiction is considered as one of thearbitration friendly jurisdiction in the world.2. Likewise, the law of Pakistan can be framed in harmony with the UNCITRAL ModelLaw, the drafting of which mainly aimed at developing the countries to harmonizetheir laws, such step from Pakistan to enact in lines of UNCITRAL law will help thenation to take precedents from the Indian courts as India has been jurisdiction underthe UNCITRAL Model Law since 1996, but while making such move it is essential toremember the fact that India has not been completely considered as a arbitrationalfriendly jurisdiction and that criticism still exist. Page 51 ARBITRATION - PAKISTAN3. While considering imbibing law of any jurisdiction to develop its position as anarbitrational friendly jurisdiction it is essential that Pakistan consider those laws thatagree with the socio-economic condition of the nation and do not hinder the publicpolicy of the nation.4. From the laws detailed in chapter 2 it can be presumed that GOP has propagatedmany laws for developing the position of arbitration in the nation and also to enforceforeign award in pursuance with the NY Convention. In this course the nationimplemented the REAO ordinance, REFA and AIDA Acts that help in inculcating theprovisions of NY convention and ICSID into the laws of Pakistan. But, even theselaws have entailed certain loopholes which would affect the position of the nation ininternational arbitration such as lack of clarity on what is considered a foreign awardunder the provisions of REFA and the requirement of GOP notification forrecognizing the award under REFFA provisions.5. Confusingly, the provisions under Part II of the Arbitration Bill 2007 can beconsidered as replica of provisions under Part I of the Indian Arbitration act, wherethey explains provisions that apply to the process of arbitration that take place withinthe boundaries of the respective nature, and this approach has affected the position ofIndia while dealing with the Bhatia International v Bulk Trading S.A. and99 Another and, most recently, Venture Global Engineering v Satyam Computer100 Services, where the Supreme Court reasoned that absence of the word „only? after„shall? under section 2(2), thus wrongly interpreting that this act is not only applicableto arbitration in India but also those conducted outside India. This wronginterpretation has paved way to many criticisms and arguments based on the positionof arbitration in the nation. Thus, while drafting its laws Pakistan is advised to include99Bhatia International v Bulk Trading S.A. and Another (2002) 4 SCC 105)100Venture Global Engineering v Satyam Computer Services (2008(1) ARBLR1 37 (SC)) Page 52 ARBITRATION - PAKISTANthe word „only? after „shall? under section 2(2) of the bill to avoid above mentionedconfusion.6. The other challenge arising due to the enactment of this bill is its similarity withsection 34(2) of the Indian Act. The bill also does not provide effective terminologiesto construct the term public policies as applicable to the arbitration proceeding takingplace in Pakistan, thus, in these conditions it is very essential for the nation to reframethe sentencing under the provision of section 34 (2) of the bill such that anymisinterpretation caused due to the inclusion of terms „misrepresentation andviolation of confidentiality? can be avoided. Thus, it is therefore suggested to either101 delete these terminologies or reframe them precisely.7. The need for establishing a academic institution is also very essential for improvingthe position of international arbitration in Pakistan. These institutions must beestablished with both foreign and local faculty such that they meet the requirements ofacademia. The students should be imparted with the knowledge of internationalarbitration and also should be given an opportunity and with required material toresearch on the comparative study among different jurisdictions in internationalarbitration.8. Even though the International Islamic University of Islamabad has been giving thetraining opportunity for the dispute settlement under WTO and the foreign awardenforcement program, the knowledge on international arbitration mechanism and lawsis still low because there is lack of initiative to start any such programs. Thus, it isadvisable that the university do take initiatives for improving this conditions andprovide expertise knowledge to all students on international arbitration because101 Same as note 19, para. 10 to 20 Page 53 ARBITRATION - PAKISTANavailability of fertile ground on this mechanism is very essential for establishing an102 effective arbitration center.9. Developing awareness about the alternative dispute resolution is very essential forincreasing the success ration of this process and its acceptability in legal fraternity and103 beyond by the laws of the nation.10. The most important step to be taken by Pakistan to advance its position on theinternational arbitration sphere is making Pakistan attractive to the seat of arbitrationand taking initiatives to develop the ratio from average of three cases to more. Themostimportant step advised in this stream is convincing the foreign parties to enactPakistan law for arbitration proceedings and making required changes in the lawsenacted such that the procedural law is compatible with the modern internationalarbitration process.11. Additional step to enhance its position after it has attained required infrastructure asper the Queen Mary, University of London survey it is essential that the nation inviteall the foreign arbitral institutions globally to create venue in Pakistan. In this regardsICC happens to make better fruitful efforts and figure?s of 2002 ICC survey shownotable increase in number of arbitrators appointed in developing nations and thisavenue is considered to be very successful for third world nations. However, a stepfrom the ICC Pakistan is not just enough, it also requires Pakistan also to take a step104 forward to improve its arbitration conditions.Thus, based on the above suggestions it can be observed that unless Pakistan takes willfulstep to develop its position in international arbitration and enforcement of award,enactment of any impressive and successful law will not be fruitful. The effort and zeal of102 Same as note 70,p. no. 9103Ibid, p. no. 11104Same as note 70, p. no. 12 Page 54 ARBITRATION - PAKISTANthe nation will help it to overcome all challenges and successfully enact foreign awardunder NY conventions.CONCLUSIONFrom the above discussion and arguments under different sections it can be observed thatPakistan on a conclusive note is in favor of implementing and enacting the foreign awardunder the NY convention and has taken effective measures for the same. The laws in Pakistanirrespective of certain drawbacks have played a vital role in developing the position ofarbitration in the nation. The nation it can be observed has taken effective measures todevelop the position of arbitration by propagating different acts such as the AA (pre-partitionenactment), APC, REAO ordinance, REFA and AIDA act. To sum up, it can be observed thatthe promulgation of REAO ordinance and the REFA-AIDA acts can be considered as aneffective step taken by the nation as it helps the nation to step forward into global economyand improve its position as an arbitration institution.The ordinance passed to enact the NY convention can be marked as a major and welcomeaddition for developing the standards of international arbitration in the nation andenforcement of foreign arbitral award. Irrespective of the fact that Pakistan had been thesignatory of the NY Convention in 1958, it took the nation 47 year to promulgate theprovisions under the NY Convention through the REAO ordinance in 2005 and the REFA actin 2011, till such enactments it can be observed that the nation has to a certain extent giveneffective judgments in the cases relating to foreign award under the provisions of AA andAPC. This explains that enactment of the ordinances or the acts stated above are not much ofa fundamental shift in the law because the nation on a successive note had already strived to agreater extent evolved in the line of international arbitration developments with its judicialprinciples and approach. Page 55 "