ISLAMABAD: 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 specialized, one-stop, not-for-profit body under SECP oversight, offering fair and efficient dispute resolution services to consumers, investors, and financial institutions.
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 was attended by SECP Chairman Dr. Kabir Ahmed Sidhu and Commissioners Mr. Muzzafar Ahmed Mirza, Mr. Imtiaz Haider, Mr. Muhammad Ali Farid Khawaja, and Mr. Zeeshan Khattak.
It 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), the Insurance Association of Pakistan, and other stakeholders.
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.
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 specialized dispute-resolution model and said it offered valuable lessons that could be adapted to Pakistan's financial sector.
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.
The Federal Secretary for Law and Justice, Raja Naeem Akbar, who also attended the consultation, extended his full support to the initiative. He expressed the view that the proposed reform model should be replicated by provincial governments to ensure a cohesive and nationwide improvement in dispute resolution mechanisms across all sectors.
Former Supreme Court judge Justice (R) Mushir Alam and Lahore High Court Judge Justice Jawad Hassan welcomed the initiative, observing that institutionalized 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.
