PTBP Web Desk

The Federal Cabinet has approved the country’s accession to the United Nations Convention on International Settlement Agreements Resulting from Mediation, widely known as the Singapore Mediation Convention.

This decision marks a milestone in Pakistan’s legal reform agenda, aimed at improving the country’s ability to handle cross-border disputes and enhance its appeal as a reliable trade partner.

Adopted on December 20, 2018, the Singapore Mediation Convention offers a global framework for enforcing international mediated settlement agreements (iMSAs). It was opened for signature in Singapore on August 7, 2019, and later at the United Nations Headquarters in New York. The Convention came into force on September 12, 2020, after being ratified by three countries, including Qatar.

The Convention eliminates the need for prolonged court proceedings in resolving cross-border disputes, making mediation a cost-effective and efficient alternative to arbitration and litigation.

The approval by the Federal Cabinet demonstrates the government’s commitment to aligning Pakistan’s legal and economic frameworks with global standards. This move is expected to bolster investor confidence and facilitate the country’s participation in international trade and commerce.

The Singapore Mediation Convention has garnered global recognition. So far:

• 57 countries, including Saudi Arabia, Malaysia, Turkey, United Kingdom, United States, and China, have signed the Convention.
• 14 countries, including Saudi Arabia, Turkey, and Japan, have ratified the agreement, demonstrating its growing acceptance in international trade law.

By adopting the Convention, Pakistan will align its dispute resolution mechanisms with global best practices, creating a predictable and stable environment for international businesses.

With the recognition and enforcement of mediated settlement agreements across jurisdictions, Pakistan is poised to attract foreign investors and strengthen trade relations.

The Convention will simplify the resolution of cross-border disputes, reducing legal costs and delays, which is crucial for fostering a business-friendly environment.

The Singapore Mediation Convention ensures that mediated settlement agreements between parties in different countries can be enforced directly in signatory states. This framework eliminates the complexities of pursuing litigation or arbitration in foreign jurisdictions, providing businesses with a faster and more economical path to dispute resolution.

The Federal Cabinet’s approval of this agreement aligns with Pakistan’s broader efforts to modernize its legal framework, especially in areas related to trade and investment. This step also underscores the government’s dedication to fostering a climate of economic growth and stability.