The Foreign Arbitration Clause; An Adverse Effect on Pakistan

International commercial arbitration has become a preferred mode of resolution of transnational commercial disputes. Given progressively increasing international transactions in the globalized world, international conventions relating to arbitration, existence of international organizations, facilitating arbitration, internationally acceptable arbitral rules and flexibility to choose the procedure and designate the arbitrators certainly makes arbitration much more popular than the conventional litigation.<br><br>To recognize this development Pakistan has ratified the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards. To comply with this treaty, Pakistan has made legislations regarding international arbitrations in order to recognize and enforce the foreign arbitration and foreign arbitral awards in Pakistan. Unfortunately, the legislation regarding the arbitration in Pakistan is quite silent and has many uncertainty and conflicting judicial precedents due to which Pakistan suffered a huge loss and economic pressure. <br><br>The autonomy of foreign arbitration clause and the recognition of the foreign arbitral award is still uncertain due to the misinterpretation of laws by the lawyers as well as the judges. This research paper will discuss the stages of international arbitrations and address the issues faced by Pakistan at every stage of the international arbitrations.<br>