Arbitration of Construction and Infrastructure Disputes in Pakistan:Lessons from FIDIC Contracts and International Practice

  • Aisha Rasool Senior Consultant Research and Opinion, Project Head (International Mediation & Arbitration Centre, Pakistan) Ministry of Law and Justice, Pakistan.

Abstract

The construction and infrastructure industries in Pakistan (specifically in relation to CPEC) are increasingly using FIDIC standard form contracts, which direct disputes to the Dispute Board and international arbitration. There are also shortcomings in the procedures introduced by these mechanisms, as many construction disputes still come before the Pakistani Courts, and local parties are not very knowledgeable about the technical and procedural requirements of FIDIC arbitration. This article highlights the risk allocation and dispute resolution procedures in FIDIC contracts, reviews Pakistan's experience with arbitration in both domestic and international forums, and compares with other jurisdictions such as the United Kingdom, Singapore, and the Gulf countries. At the end, it proposes recommendations and changes to contracts, institutional design, and capacity building to create a more coherent and efficient dispute resolution system between the contracting parties in construction and infrastructure disputes in Pakistan.

Keywords: construction arbitration, infrastructure disputes, FIDIC contracts, Pakistan, CPEC, dispute boards, enforcement, institutional reform.

Published
2023-10-23