Pakistan has moved closer to establishing its first dedicated Financial Services Dispute Resolution Centre (DRC), a proposed independent institution designed to provide faster, more affordable, and accessible resolution of disputes across the financial sector. The proposed centre would operate as a specialised, one-stop, not-for-profit body under SECP oversight, offering fair and efficient dispute resolution services to consumers, investors, and financial institutions.
Stakeholder Consultation Held in Islamabad
To advance the initiative, the Securities and Exchange Commission of Pakistan (SECP), in collaboration with the U.S. Department of Commerce’s Commercial Law Development Program (CLDP) and Singapore’s Financial Industry Disputes Resolution Centre (FIDReC), held a stakeholder consultation in Islamabad. The consultation brought together representatives from the judiciary, financial regulators, and key market institutions, including the Pakistan Stock Exchange (PSX), Pakistan Mercantile Exchange (PMEX), Central Depository Company (CDC), National Clearing Company of Pakistan Limited (NCCPL), Mutual Funds Association of Pakistan (MUFAP), Insurance Association of Pakistan, and other stakeholders.
SECP Commissioner Emphasizes Public Confidence
Opening the consultation, SECP Commissioner Muzzafar Ahmed Mirza said that the strength of a financial system is measured not only by how efficiently it operates, but also by how effectively it resolves disputes when problems arise. He emphasized the need for accessible and timely dispute-resolution mechanisms to enhance public confidence in financial markets.
International Support and Lessons from Singapore
Representatives of CLDP shared international experiences in dispute-resolution reforms and reiterated their commitment to supporting the SECP in developing the institutional framework and capacity required for the proposed centre. Officials from Singapore’s FIDReC highlighted the success of Singapore’s specialised dispute-resolution model and said it offered valuable lessons that could be adapted to Pakistan’s financial sector.
SECP Chairman on Mediation as First Step
In his closing remarks, SECP Chairman Dr Kabir Ahmed Sidhu said mediation had evolved globally from a mechanism of last resort into the preferred first step for resolving disputes. He noted that legislative support and judicial endorsement of mandatory mediation could significantly reduce litigation costs, accelerate recoveries, improve enforcement outcomes, and strengthen investor confidence.
Judicial Support for Institutionalised Mediation
Former Supreme Court judge Justice (R) Mushir Alam and Lahore High Court Judge Justice Jawad Hassan welcomed the initiative, observing that institutionalised mediation would complement the judicial system by reducing court backlogs, preserving commercial relationships, and making justice more accessible to citizens. Participants expressed broad support for the proposed DRC and underscored the importance of continued stakeholder engagement as Pakistan moves forward with plans to establish its first dedicated financial services dispute-resolution institution.
