PUBLIC POLICY IN PAKISTAN A ROADBLOCK TO THE EXECUTION OF FOREIGN ARBITRAL AWARD

Abstract

The International Public Policy of Pakistan is profoundly entangled between contractual laws, domestic arbitration, and loose & broad definition by Courts; hence hampering the execution of foreign arbitral award. The article seeks to better comprehend and investigate the doctrine of public policy as a basis for refusing enforcement of foreign arbitral awards. What complicates matters is the absence of a universally accepted definition of public policy or practise in its implementation, which differs from state to state. The vagueness, subjectivity, and unpredictability connected with the notion of public policy have hindered the efficacy of international commercial arbitration on many occasions. Pakistan, which is in dire need of international investment and access to international markets for its products, needs to come out with strong and predictable public policy mechanism. Case study is particularly done to understand the complex influence of domestic and international public policy. New phenomenon arising in the name of Transnational Public Policy is also explored. This study further argues that Pakistani courts need to redefine the categories of public policy keeping in consideration the growing demands of international trade and commerce.

Keywords: Arbitral Award, Foreign Award, Public Policy, Arbitration, Domestic Public Policy.