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The International Multi-member Arbitration Centre (IMAC) recently concluded a crucial training programme for Pakistani lawyers, focusing on modern alternative dispute resolution (ADR) mechanisms. This initiative aims to bolster the nation's legal capacity, streamline commercial dispute resolution, and enhance the overall investment climate. This pivotal training is set to significantly reduce judicial backlog and attract foreign direct investment by offering efficient legal recourse, as of March 2026.

  • What: IMAC has trained over 300 Pakistani legal professionals in advanced alternative dispute resolution (ADR) techniques.
  • When: The latest phase of the comprehensive four-week programme concluded on March 10, 2026.
  • Where: The training was primarily conducted at IMAC's Lahore and Karachi centres, with virtual participation facilities for professionals in other cities.
  • Why: To enhance legal capacity, reduce judicial backlog, improve the ease of doing business, and attract foreign direct investment in Pakistan.
  • Impact: Expected to improve Pakistan's legal framework, making it more attractive for local and international investors seeking efficient dispute resolution.

The programme, which saw the participation of over 300 legal professionals from across Pakistan, represents a significant stride towards modernising the country's legal infrastructure. With an estimated 2.2 million cases pending across various courts as of early 2026, according to data from the Ministry of Law and Justice, the imperative for efficient and timely dispute resolution has never been more pressing. The traditional litigation system, while fundamental, often faces challenges of prolonged timelines and high costs, deterring both local businesses and foreign investors.

Pakistan's commitment to improving its investment climate, particularly in the context of ambitious projects like the China-Pakistan Economic Corridor (CPEC), necessitates a robust and credible dispute resolution framework. As PakishNews previously reported on the challenges and opportunities in CPEC-related dispute mechanisms, the ability to resolve commercial disagreements swiftly and fairly is paramount for investor confidence. The IMAC training directly addresses this need by equipping lawyers with the skills to navigate complex commercial disputes through arbitration, mediation, and conciliation, aligning Pakistan's legal practices with international best standards.

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What is Alternative Dispute Resolution (ADR) and Why is it Crucial for Pakistan?

Alternative Dispute Resolution (ADR) encompasses a range of methods for resolving legal disputes outside of traditional court litigation. These methods primarily include arbitration, mediation, and conciliation. Arbitration involves a neutral third party (or panel) who hears both sides and makes a binding decision, similar to a court judgment but often faster and less formal. Mediation, on the other hand, uses a neutral third party to facilitate communication and negotiation between disputing parties, helping them reach a mutually acceptable agreement. Conciliation is similar to mediation but often involves the conciliator suggesting solutions.

For Pakistan, embracing and strengthening ADR mechanisms is crucial for several reasons. Firstly, it offers a viable solution to the nation's persistent judicial backlog. According to a report by the Law and Justice Commission of Pakistan in late 2025, commercial disputes alone contribute to approximately 25% of the pending cases in High Courts, significantly impacting business operations and economic growth. ADR can reduce dispute resolution time by up to 70% and costs by 50% compared to traditional litigation, as highlighted by a study conducted by the Pakistan Institute of Corporate Governance.

Secondly, a robust ADR framework is a cornerstone for attracting and retaining foreign direct investment (FDI). International investors often look for jurisdictions with predictable, efficient, and internationally recognised dispute resolution options. Pakistan's current ranking of 108 out of 190 economies in the World Bank's Ease of Doing Business report (2020, latest available data) underscores the need for reforms. Enhancing ADR capabilities signals to global markets that Pakistan is serious about providing a fair and expeditious legal environment. During the first eight months of fiscal year 2025-26, Pakistan attracted USD 1.45 billion in FDI, a figure that could be substantially boosted with improved legal certainty, according to the State Bank of Pakistan.

IMAC's Programme: Bridging the Skills Gap

The IMAC training programme, which launched its latest phase in February 2026 and concluded on March 10, was meticulously designed to bridge the existing skills gap among legal practitioners in Pakistan. Barrister Aftab Ahmed, Director General of IMAC, elaborated on the curriculum, stating, "Our comprehensive four-week programme covered international arbitration conventions, domestic arbitration law, mediation techniques, and drafting of ADR clauses. We brought in leading international and local experts to ensure our participants received world-class instruction." The programme emphasised practical, hands-on training, including mock arbitration proceedings and simulated mediation sessions, to equip lawyers with actionable skills.

Participants, ranging from junior associates to senior partners in law firms, were selected through a rigorous process, ensuring a diverse and highly motivated cohort. "The feedback has been overwhelmingly positive," added Barrister Ahmed. "Many participants expressed that the programme provided them with tools they previously lacked, enabling them to confidently advise clients on ADR strategies and represent them effectively in such forums." This initiative is a testament to IMAC's commitment to legal capacity building, which is vital for the long-term health of Pakistan's justice system. In a related development covered by PakishNews, the government has also been pushing for broader legal reforms to support such initiatives.

The significance of IMAC's initiative has been widely acknowledged by legal experts and policymakers. Justice (Retd.) Malik Jamil, a former Supreme Court judge and a prominent advocate for legal reform, commended the programme. "This training is not merely about learning new techniques; it's about fostering a cultural shift within our legal community towards more efficient and collaborative dispute resolution," he told PakishNews. "The traditional adversarial system, while having its merits, often falls short in complex commercial matters where preserving business relationships is as important as resolving the dispute. ADR offers that balance."

Mr. Hassan Sheikh, Secretary, Ministry of Law and Justice, underscored the government's commitment to promoting ADR. "The Ministry is actively working on legislative amendments to strengthen the legal framework for arbitration and mediation, aligning it with international best practices like the UNCITRAL Model Law," he stated during a recent press briefing in Islamabad. "Initiatives like IMAC's training programme are crucial partners in this endeavour, as they ensure we have a cadre of skilled professionals ready to utilise these improved legal tools. We are aiming for a 15-20% increase in commercial disputes resolved through ADR within the next three years."

From the business perspective, Ms. Zara Khan, CEO of the Karachi Chamber of Commerce and Industry, highlighted the direct economic benefits. "Delays in dispute resolution are a major deterrent for both local and foreign investors. They tie up capital, create uncertainty, and erode confidence," she explained. "Having a pool of lawyers proficient in ADR means businesses can resolve conflicts faster, keep their operations running smoothly, and focus on growth. This directly translates into a more attractive investment environment for Pakistan, potentially boosting our FDI inflows by an additional 10-12% annually if implemented effectively across the board."

The Road Ahead: Challenges and Opportunities for ADR in Pakistan

While the IMAC training marks a significant step, the journey towards fully institutionalising ADR in Pakistan presents both challenges and opportunities. A primary challenge is raising awareness among the general public and businesses about the benefits of ADR. Many still instinctively resort to traditional litigation due to a lack of understanding or trust in alternative mechanisms. Comprehensive public awareness campaigns, spearheaded by legal bodies and government institutions, are essential to demystify ADR and highlight its advantages.

Another critical area is the need for continued legislative and judicial support. While Pakistan has the Arbitration Act of 1940 and provisions for mediation in the Civil Procedure Code, modernising these laws to address contemporary commercial realities and ensure enforceability of ADR awards is crucial. The judiciary also plays a vital role in encouraging ADR, for instance, by referring suitable cases to mediation or arbitration and consistently upholding the validity of ADR agreements and awards. This would create a virtuous cycle, building confidence in the system. Read more on the ongoing efforts for judicial reforms in Pakistan at PakishNews.

What Happens Next

IMAC plans to conduct similar training programmes on a regular basis, expanding its reach to more legal professionals across different cities and specialisations. The Centre is also exploring partnerships with provincial bar councils and law universities to integrate ADR training into legal education curricula, ensuring that future generations of lawyers are equipped with these essential skills from the outset. Monitoring the impact of these trained professionals on actual case resolution rates and investor confidence will be crucial for assessing the long-term success of this initiative.

Stakeholders, including the Ministry of Law, the judiciary, bar associations, and business chambers, should continue to collaborate to create an enabling ecosystem for ADR. This includes establishing dedicated ADR centres, promoting ethical standards for arbitrators and mediators, and continuously reviewing legislative frameworks to keep pace with global developments. The success of initiatives like IMAC's training programme will ultimately be measured by a tangible reduction in judicial backlog, an improvement in Pakistan's Ease of Doing Business ranking, and an increase in both domestic and foreign investment, all contributing to a more just and prosperous Pakistan.

Related: More Pakistan Legal News | Alternative Dispute Resolution

Frequently Asked Questions

❓ What is the primary goal of IMAC's training for lawyers?

The primary goal of IMAC's training is to enhance the professional capabilities of Pakistani lawyers in modern alternative dispute resolution (ADR) techniques, such as arbitration and mediation. This initiative aims to reduce the significant judicial backlog, streamline the resolution of commercial disputes, and ultimately improve Pakistan's appeal as an investment destination by providing efficient and internationally recognised legal recourse. Over 300 legal professionals participated in the latest comprehensive four-week programme.

❓ How does improved dispute handling affect Pakistan's economy?

Improved dispute handling, particularly through efficient ADR mechanisms, significantly boosts Pakistan's economy by reducing business uncertainty and litigation costs. This attracts more foreign direct investment (FDI), as investors prefer jurisdictions with predictable and swift legal recourse. According to the Karachi Chamber of Commerce and Industry, effective ADR could potentially increase Pakistan's annual FDI inflows by an additional 10-12% by fostering a more stable and reliable business environment.

❓ What challenges remain for widespread adoption of ADR in Pakistan?

Despite initiatives like IMAC's training, significant challenges remain for the widespread adoption of ADR in Pakistan. These include a general lack of public awareness and trust in alternative mechanisms compared to traditional courts, as well as the need for continuous legislative updates to modernise existing laws like the Arbitration Act of 1940. Furthermore, consistent judicial support and referral of suitable cases to ADR are crucial for building confidence and ensuring the enforceability of ADR awards, as noted by former Supreme Court Justice (Retd.) Malik Jamil.