Abstract:
As, it provides the means to have an effective and speedy solution to the controversy between the parties involved in the disputing countries, International Commercial Arbitration, has become an indispensable part of international business activities. The factors, which have influenced the business environment and foreign investments in the Islamic Republic of Pakistan with regard to international commercial arbitration are the focus of this research paper. In an attempt to explain the factor of arbitration in the context of this study, it is critical to identify how arbitration impacts Pakistan’s investment climate appeal along with the general business environment by focusing on the role of arbitration mechanisms within investment contexts. The article begins with the presentation of the key concepts and benefits of international commercial arbitration: if properly implemented, the method contributes to the enhancement of the efficacy of dispute resolution, reduction of legal dangers, and boosting of investors’ confidence. It examines how Pakistan follows and deals with international arbitration standards and develops a more positive investment environment by implementing the 1958 global bilateral convention in relation to the recognition and enforcement of foreign arbitration awards. Subsequently, the research also discusses the evolution of Pakistan’s arbitration framework with reference to crucial amendments such as the 2011 Amendment in the Arbitration (International Investment Disputes) Act and the backdrop of the 1940 Arbitration Act. It assesses the formation of specific arbitration organizations and their impact on the arbitration place in Pakistan, like the Karachi Centre for Dispute Resolution and International Investment and Commercial Arbitration (CIICA). Issues of efficiency in Pakistan arbitration; are the capacity of institution, interference by courts, gaps in law and procedure. The paper also identifies fields that require further enhancement such as improvement of institutional setting, enhancement of international cooperation, and enhancing public awareness on arbitration. Altogether, it informs that international commercial arbitration is relevant for mapping Pakistan’s corporate landscape and attracting international funds.
Keywords: Arbitration, Commercial Disputes, FDI, Foreign Investment, Islamic Republic of Pakistan
