Pakistan moves closer to mediation pact to reassure investors

ISLAMABAD: Law Minister Azam Nazeer Tarar has said Pakistan is making steady progress towards ratifying the Singapore Convention on Mediation and introducing the legislation needed to implement it.

Addressing Singapore Convention Week 2026 virtually on Monday, the minister said the implementing legislation and ratification process were moving forward and would soon be presented before Parliament.

Pakistan became the 58th signatory to the Singapore Convention on Mediation in May 2025. The convention provides an international framework for the enforcement of commercial settlements reached through mediation.

Tarar said ratification of the convention, followed by the enactment of domestic implementing legislation, would provide greater legal certainty to businesses operating in Pakistan.

Once the process is completed, mediated settlements reached in Pakistan would be enforceable across the 57 other states that are parties to the convention, he said.

The law minister described Pakistan’s decision to join the convention as a practical economic measure rather than a symbolic diplomatic step.

He said an effective mediation framework could help businesses resolve commercial disputes without becoming involved in lengthy litigation. This, he added, could reduce legal risks and help preserve business relationships.

Tarar said the move was also aimed at improving confidence among international investors. A predictable mechanism for resolving commercial disputes, he noted, was an important part of a secure investment environment.

He stressed that Pakistan wanted to assure the international business community that the country was committed to strengthening the rule of law.

“The rule of law is an economic asset,” the minister said, emphasising that legal certainty should be viewed as an important component of economic development rather than simply a legal requirement.

The proposed framework could make Pakistan’s dispute-resolution system more attractive to foreign businesses by giving investors greater confidence that negotiated settlements would have legal force across participating jurisdictions.

Tarar also acknowledged the assistance provided by Pakistan’s Ministry of Law, the government of Singapore and the Singapore International Mediation Centre during the process.

The minister expressed appreciation for their guidance and support as Pakistan works towards completing the ratification and legislative requirements.