Pakistan is advancing plans to establish a dedicated Alternative Dispute Resolution (ADR) centre, modelled on international best practices, to expedite the settlement of financial and corporate disputes in a major push to enhance investor confidence and improve the ease of doing business.
SECP said today thyat the initiative was the central focus of a high-level meeting between officials from the Securities and Exchange Commission of Pakistan (SECP) and a visiting delegation from the United States Department of Commerce’s Commercial Law Development Program (CLDP).
Both parties discussed the creation of an independent and impartial institution for out-of-court settlements. The proposed framework draws inspiration from Singapore”s successful Financial Industry Disputes Resolution Centre (FIDReC), which employs structured mediation and adjudication to resolve consumer financial disagreements.
During the session, SECP Commissioner for Law, Mr. Muzzafar Ahmed Mirza, briefed the American officials on the regulator’s ongoing and previous initiatives to promote ADR, highlighting existing mechanisms like the Small Dispute Resolution Committee in the insurance sector.
Mr. Mirza outlined the SECP’s vision to expand these frameworks to ensure timely, cost-effective, and efficient dispute resolution across the nation”s corporate and financial industries.
In a separate courtesy call with the delegation, SECP Chairman Dr. Kabir Ahmed Sidhu emphasised that effective ADR mechanisms can significantly reduce the burden on courts by resolving conflicts efficiently, thereby lowering costs for businesses.
Dr. Sidhu appreciated the CLDP”s cooperation and expressed the SECP”s willingness to work closely with the US programme to advance these crucial reforms in Pakistan.
The CLDP delegation was led by its Deputy Chief Counsel, Mr. Zmarak Khan, and included several international programme specialists and legal advisors. The CLDP provides technical assistance to emerging economies to strengthen legal and regulatory frameworks that support commercial activity.