NA panel approves Trade Dispute Resolution Bill

It will help enhance Pakistan’s ranking on Ease of Doing Business Index

ISLAMABAD:

The National Assembly Standing Committee on Commerce on Wednesday unanimously approved two bills, namely the Trade Dispute Resolution Bill 2022 and Trade Organisation (Amendment) Bill 2022.

During its meeting, the committee was informed that due to the absence of a proper trade dispute resolution mechanism, Pakistan’s ranking on the Ease of Doing Business (EODB) Index of the World Bank was being adversely affected.

If the draft bill was passed, for the first time in the country’s history, exporters would be able to file claims and complaints in Pakistan against their foreign clients, said Commerce Secretary Muhammad Sualeh Ahmed.

Discussing the Trade Organisation (Amendment) Bill 2022, Commerce Minister Syed Naveed Qamar said that with the approval of the bill, the election of chambers and other trade organisations would be held after every two years, instead of one year. “The law will be applicable from January 2023,” he said.

It was highlighted that Pakistan’s foreign trade was growing due to the international trade liberalisation under the World Trade Organisation (WTO), but at the same time the number of disputes was also increasing. If the issue was not resolved efficiently, it could dent Pakistan’s image, besides posing a threat to the national economy.

The secretary told the meeting that currently there was no law that could settle the disputes between Pakistani exporters and their foreign buyers.

“The Import and Export Control Act 1950 addresses only the disputes of foreign importers with Pakistani exporters,” he pointed out, adding that now the arbitration award obtained in Pakistan would be enforceable in any country that had ratified the United Nations Arbitration Convention.

Furthermore, the committee was informed that the new law was swift and relatively inexpensive. The alternative dispute resolution system will help enhance the foreign buyers’ trust in Pakistan. With this, contract enforcement will also improve, leading to a better place for Pakistan on the EODB Index.

Published in The Express Tribune, November 24^th, 2022.

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