Ameliorate Investor-State Dispute Settlement (ISDS) Transparency exigences for Developing Nations: A Holistic Evaluation Utilizing a Pakistan Case Study.

Abstract

The opacity of Investor-State Dispute Settlement (ISDS) procedures has drawn Critique, especially in relation to poor countries like Pakistan. A crucial but controversial process in international investment agreements, Investor-State Dispute Settlement (ISDS) has been beset by structural problems that compromise fairness, openness, and just governance. The inherent bias towards foreign investors, disrespect for host state sovereignty, and failure to fulfill sustainable development imperatives are all exposed in this paper's critical study of ISDS. The report exposes the terrible financial, legal, and reputational costs of opaque ISDS procedures on developing countries through the prism of Pakistan's expensive Reko Diq and Karkey arbitration disputes. It calls for drastic changes to overthrow the current system and criticizes the ad hoc tribunal system for sustaining conflicts of interest, erratic decisions, and excessive financial obligations. The paper examines potential Artificial Intelligence (AI) can be used to unify and enhance transparency in ISDS processes, with a focus on Pakistan's experience in the Reko Diq case. The proposed revisions to seek  strike a balance between protection of investor and the host state's authority to govern in the public interest by incorporating sustainable development goals and empowering local stakeholders. This study emphasizes how urgently ISDS governance needs to change to a model that eliminates exploitative behaviors, puts inclusion first, and is in line with international development goals. In order to promote responsible investment and preserve economic sovereignty, it urges governments, international organizations, and civil society to work together to rethink ISDS as a just, efficient, and equitable system. ISDS will continue to be an instrument of injustice, sustaining inequality and impeding the advancement of weaker countries, unless it is addressed with courage and decisiveness.