Trade disputes: Experts urge for out-of-court settlements

Suggest arbitration and conciliation to save time and money

LAHORE: A good mechanism for trade dispute resolution would not only help Pakistani businessmen save time and money, but it would also strengthen their external trade relations.

This was the upshot of the speeches delivered at a brainstorming seminar on ‘Revamping the Mechanism of Trade Dispute Resolution in Pakistan’ jointly organised by the Trade Dispute Resolution Organization (TDRO), Ministry of Commerce, Government of Pakistan and Lahore Chambers of Commerce and Industry on Tuesday.



Small and Medium Enterprises Development Authority Ex-Chairman Khawaja Bilal Ahmed said in order to attract foreign investments, all possible options must be considered and utilised.

“We have to utilise all options to make the business environment attractive for foreign investors and buyers and the promotion of out-of-court settlement culture is one of them,” he said.

“We need to sit on the table to sort out our issues, litigation is not the answer,” he added.

While endorsing Ahmed’s point of view, LCCI President Ijaz A Mumtaz said the conventional way of litigation is not always favourable as it is time consuming, many a times not equitable, and may cause permanent damage to business relations. He said that arbitration and conciliation saves time and money for businesses.

TDRO Director General Roubina Taufiq Shah said the Pakistani businessmen are facing hurdles and one of the leading factors is the increase in trade disputes between them and their counterparts.

“Commercial disputes that end in courts of law are always costly and usually bitter,” she said.

TDRO is also providing assistance to Pakistani exporters who are defrauded in international trade and also educating and training exporters and importers to avoid disputes. She urged the LCCI members to avail the services of the organisation.

Mumtaz said that when trade relations develop, there are possibilities that trade disputes may arise. He said that the fundamental purpose of introducing alternate dispute resolution mechanisms is to help local and foreign companies avoid litigation constraints.

Published in The Express Tribune, June 17^th,  2015.

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