Resolving Commercial Disputes in Pakistan: The Role of ADR and Specialized Commercial Courts

Commercial dispute resolution in Pakistan continues to suffer from judicial backlog, procedural delays, and limited technical expertise, weakening investor confidence and economic activity. This study examines how Alternative Dispute Resolution (ADR) particularly mediation and arbitration, alongside specialized commercial courts can provide efficient and credible alternatives. Using a doctrinal research method, it evaluates the Alternative Dispute Resolution Act 2017, provincial commercial court laws, emerging arbitration centres, and relevant judicial practices. The analysis finds that while ADR offers flexibility, confidentiality, and cost savings, its effectiveness is limited by weak enforceability mechanisms and the absence of accredited panels. Specialized commercial courts provide faster and more informed adjudication but require better resources, digital case-management, and stronger integration with ADR processes. The study concludes that Pakistan needs a modern arbitration law aligned with the UNCITRAL Model Law, mandatory mediation in select commercial matters, enhanced commercial court capacity, and investment in credible ADR institutions. These reforms are essential for building a predictable, efficient, and investor-friendly dispute resolution system capable of supporting domestic and cross-border commercial activity.