Legal and Cultural Barriers to Alternative Dispute Resolution in Pakistan: A Comparative Study with Singapore

Abstract

Pakistan’s judicial system is currently overwhelmed by a backlog of over 2.2 million cases, leading to severe delays that negatively impact businesses and undermine investor confidence. This Article explores these challenges within Pakistan’s commercial sector through a doctrinal comparative analysis, using Singapore’s internationally recognized ADR framework as a benchmark of efficiency and reliability. Legally, Pakistan’s ADR landscape is constrained by outdated laws, most notably the Arbitration Act of 1940, which allows excessive judicial interference and weakens the finality and speed of arbitration. Additionally, fragmented provincial legislation such as the Punjab Alternate Dispute Resolution Act of 2019—creates inconsistencies that confuse businesses operating across different regions, discouraging widespread adoption. Culturally, resistance within the legal community, often driven by an adversarial mindset and fears of income loss due to faster ADR processes, poses a major hurdle. SMEs, which stand to benefit most from affordable and timely dispute resolution, often avoid ADR due to a lack of trust. As a result, many rural businesses continue to rely on informal mechanisms like Jirgas and Panchayats, which are often biased and lack procedural fairness. Recent court decisions suggest growing judicial support for ADR, especially mediation, but progress has been uneven due to weak infrastructure, limited training, and lack of institutional coordination. Drawing on lessons from Singapore’s well-developed system anchored by institutions like the Singapore International Arbitration Centre (SIAC) and the Singapore International Mediation Centre (SIMC) this study offers a set of practical reforms. These include modernizing the Arbitration Act, harmonizing provincial ADR laws, expanding the network of ADR centers, and launching nationwide awareness campaigns to build public trust and accessibility.