The Securities and Exchange Commission of Pakistan is considering introducing mandatory pre-litigation mediation for commercial disputes and plans to establish a dedicated dispute resolution center for the financial sector to reduce court backlogs and improve investor confidence.
Speaking at a high-level meeting attended by judges, representatives of the Ministry of Law, lawyers, and members of the corporate sector, SECP Chairman Dr. Kabir Ahmed Sidhu stressed the need for reforms in Pakistan’s dispute resolution framework.
He said thousands of cases, including several involving the SECP, remain pending before courts and argued that a more effective mediation system could significantly reduce the burden on the judiciary, lower litigation costs, and accelerate recoveries.
Sidhu cited the United Kingdom’s experience with mandatory pre-litigation mediation, saying it had produced positive results and could serve as a model for Pakistan.
He added that the proposed reforms would be pursued with the support of the judiciary and could bring about a major shift in the country’s business environment.
The SECP chairman also announced plans to establish a specialized dispute resolution center for the financial sector with assistance from the United States Commercial Law Development Program. He said an efficient alternative dispute resolution mechanism would help strengthen transparency, improve regulatory effectiveness, and boost investor confidence.
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