ISLAMABAD: The Chief Justice of Pakistan, in his capacity as chairperson of the Law and Justice Commission of Pakistan, chaired a high-level consultation at the Supreme Court on Thursday to address legislative and procedural gaps causing delays in banking dispute resolution.
The meeting drew on the Federal Board of Revenue’s experience with Alternative Dispute Resolution (ADR) committees in tax litigation, which have helped reduce backlogs and expedite settlements.
Officials explored adapting similar ADR mechanisms for the banking sector to ensure faster, more cost-effective and predictable resolution of disputes.In his remarks, the chief justice said banking litigation remains a “critical bottleneck affecting financial discipline, credit flow and overall economic stability”. He called for targeted statutory reforms, streamlined procedures and institutionalised ADR frameworks to reduce reliance on conventional litigation.
The consultation focused on identifying legal and procedural hurdles in banking recovery, simplifying delay-prone processes, strengthening ADR systems tailored to banking disputes, and improving coordination among regulators, financial institutions and dispute resolution forums.
The meeting was attended by Supreme Court Justices Muhammad Ali Mazhar and Miangul Hassan Aurangzeb, Finance Minister Muhammad Aurangzeb, Attorney General Mansoor Usman Awan, and senior officials from the Law and Justice Division, FBR, SECP, State Bank of Pakistan, Banking Mohtasib, FPCCI, Pakistan Banks Association, Pakistan Tax Bar Association, OICCI, and Entrepreneurs’ Organisation Islamabad chapter.
The Law and Justice Commission will consolidate proposals into a structured reform framework for technical vetting by an expert committee. The recommendations will then be placed before the commission for approval and forwarded to the Ministry of Law and Justice for policy action.
According to a Supreme Court statement, the consultation marks a “focused and strategic step” towards reforming banking dispute resolution through ADR-driven solutions aligned with the rule of law and economic governance.
