Arbitration is a consensual dispute resolution process based on the parties agreement. They submit their dispute to a panel that usually includes one or three independently appointed or on behalf of the parties.

It is a form of Alternative Dispute Resolution (ADR) that resolve disputes outside courts.

This may be conducted under the terms of the parties agreement commonly found in the terms of an applicable commercial contract or investment treaty. This form is known for its procedural flexibility, allowing parties to engage in an efficient, confidential and fair process leading to a final, binding and enforceable award.

Types of Arbitration


Institutional arbitration is administered by an arbitration institution, such as Pakistan Mediators Association (PMA) or Pakistani courts.Generally, proceedings are conducted under the Arbitration Rules chosen by the parties and drafted by the chosen institution.

Ad Hoc

Ad hoc is held only between the arbitrator and the parties. The parties must plan and conduct their own proceedings under court supervision. The parties may choose to apply a ready-made set of arbitration rules or the proceedings may be conducted under a separate set of rules, developed by the parties specifically for their purposes.

Advantages of Arbitration


Parties are free to choose a neutral venue when drafting their arbitration clauses. In addition, when a dispute arises, the parties have the right to choose to appoint an independent arbitrator of their choice to establish a neutral court.


It allows parties to agree on the procedures they wish to apply to their arbitration.

Timeliness and cost-effectiveness

Due to the flexibility and finality of the procedure, dispute resolution can often be quicker and less expensive.


The hearings are private and the award under normal circumstances is not published. Therefore, the disputes will not be disclosed to the public and where possible, the business relationship can be maintained.


Enforcement of court judgments can be difficult without an appropriate bilateral treaty.

Final and binding

Arbitrator awards are generally final. They are not reviewed on their merits which means that lengthy appeal proceedings in court can generally be avoided.

Contact Shabana Ali & Associates now for Arbitration!