On 17 December 2024, the Federal Cabinet of Pakistan granted its approval for Pakistan to join 57 other nations as a signatory to the United Nations Convention on International Settlement Agreements Resulting from Mediation, more commonly known as the "Singapore Convention on Mediation".
The Convention, adopted on 20 December 2018 and opened for signature on 7 August of 2019, provides a uniform framework for the enforcement of international settlement agreements resulting from mediation, providing greater confidence and certainty for international parties seeking to do business in the region. Pursuant to Article 3 ("General Principles"), state parties to the Convention are obligated to permit disputing parties to invoke settlement agreements "to prove that the matter has already been resolved," essentially providing for a state obligation to enforce international settlement agreements. Article 5 enumerates limited "grounds for refusing to grant relief," including the incapacity of a party, defects in the settlement agreement or settlement process, and issues of public policy. These provisions, similar to those of the New York Convention for international arbitration, provide added support for mediation as an alternative to litigation in resolving disputes in Pakistan.
Since the Convention was signed by 46 states on the day it was opened for signature, a further 11 have become signatories. Prior signatories include some of the world's largest economies and Pakistan's most significant trade partners, including the United States, China, and the United Kingdom. Upon signing, Pakistan will become the 58th new signatory, after Iraq which signed on 19 April 2024, and follows the example of another regional player in Sri Lanka, which recently ratified the Convention on 28 August 2024.
This development comes months after Pakistan's first participation in the annual Singapore Convention Week, to which it sent a delegation including Justices of High Courts from provinces across the country. It also follows a recent judgment of Pakistan's Supreme Court which called for Pakistan to join the Convention as a means of "promot[ing] efficiency and align[ing] with the principle that 'in the future, it is likely that the traditional trial will be the exception rather than the rule.'"1 As a signatory, Pakistan will next begin the process of ratification to join a growing list of 14 states party to the Convention in full.
White & Case, a consistent and established leader in the arbitration and mediation of cross-border disputes around the world and in South Asia in particular, has deep experience in alternative dispute resolution in Pakistan, including in both the mining and oil & gas sectors, and throughout the region. In this context, White & Case notes the continued promotion of alternative dispute resolution in Pakistan and remains available to discuss further relevant implications.
Thomas Mukundan (Law Clerk, Washington D.C.) contributed to the development of this publication.
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1 See Mughals Pakistan Ltd. v. Emps. Old Age Benefits Inst. & Pakistan Real Estate Inv. & Mgmt. Co., [Civil Appeals Nos. 256 & 257 of 2024] (Pak.), ¶ 10.
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