No court without trust
Summarized and contextualized by DistantNews.
At a glance
- Pakistan's Law and Justice Commission recommended establishing an International Commercial Court.
- The proposal aims for swift dispute resolution, stronger arbitration enforcement, and increased investor confidence.
- However, the author argues the court is unworkable due to a lack of judicial legitimacy, an archaic arbitration law, and a failed overlapping forum.
Pakistan's Law and Justice Commission has proposed the creation of an 'International Commercial Court of Pakistan' to boost investor confidence and streamline commercial dispute resolution. The commission, chaired by the chief justice, recommended adding a new Article 212A to the Constitution. The stated goals are to ensure swift resolution of commercial disputes, enhance the enforcement of arbitral awards, and position Pakistan as a credible destination for capital investment.
A court is only as trusted as the system around it. A court draws its power not from the statute that creates it but from the confidence of those who use it, the belief that its judges are independent and its outcomes cannot be arranged by whoever holds power outside the courtroom.
Despite the ambitious aims, the author contends that the proposed court is fundamentally flawed and unlikely to succeed. The primary reason cited is the diminished legitimacy of Pakistan's judicial system. Recent constitutional amendments, including the 26th Amendment of 2024 and the 27th Amendment of 2025, have altered judicial appointments and transferred core jurisdiction from the Supreme Court to a new Federal Constitutional Court. This has led to a widespread perception, both domestically and internationally, that the courts are now 'managed,' a perception that directly deters foreign investment.
It is now widely perceiยญvยญยญed, at home and abroad, that our courts have beยญยญcome managed, and perception is the very thing on which investment turns.
Furthermore, the author points to the inadequacy of the arbitration law that the proposed commercial court would oversee. This law is described as archaic and unworkable, failing to provide a robust framework for arbitration. The existing legal infrastructure, including the arbitration framework, is seen as a relic that does not meet modern international standards. The author contrasts Pakistan's situation with that of Gulf monarchies like Dubai, Abu Dhabi, and Qatar, which have successfully established independent commercial courts by appointing eminent judges from common-law jurisdictions, demonstrating that even absolute monarchies can guarantee judicial independence when it serves their economic interests.
If absolute monarchies can guarantee total independence to their commercial courts, a common-law republic that will not has made a choice, and a poor one.
The author argues that attempts to 'fix' the judiciary through amendments have instead set the country back. Instead of capture, the cure for a court that strays should be reform, emphasizing accountability, transparency, and openness. The proposed court, built upon a shaky foundation of compromised judicial independence and outdated laws, is unlikely to attract the trust and confidence necessary for it to function effectively and achieve its stated objectives.
What has been done in the name of fixing the judiciary has set the country back many years. You cannot amend your way to credibility, least of all by another amendment, when it was amendment that did the damage.
Originally published by Dawn. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.