Enforcing a foreign arbitral award in Pakistan
Pakistan is a New York Convention country, and its courts have become noticeably more willing to enforce foreign awards. Here is how enforcement works for foreign claimants.
Published 26 October 2026
The statute
The Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act, 2011 gives effect to the New York Convention in Pakistan. An award made in another Convention state can be recognised and enforced as if it were a decree of a Pakistani court.
Limited grounds for refusal
Enforcement may be refused only on the grounds in Article V of the Convention — incapacity, invalid agreement, lack of proper notice, excess of jurisdiction, irregular tribunal composition, an award not yet binding or set aside, non-arbitrable subject matter or public policy. Pakistani courts have held that public policy is to be read narrowly and cannot be used to reopen the merits.
What the courts have said
In Orient Power v Sui Northern Gas the Lahore High Court treated an award made abroad under a Pakistani-law contract as a foreign award and refused to review its merits; the Supreme Court declined to interfere, stressing alignment with international practice. In POSCO v Rikans (2023) the Lahore High Court enforced an award despite a local injunction, holding that honouring an arbitration agreement is itself part of Pakistani public policy.
Stopping parallel local litigation
Where a Pakistani counterparty sues locally in breach of an arbitration clause, courts have consistently stayed those proceedings. Acting quickly to seek a stay protects the arbitration and the eventual award.
Practical points
Bring a duly authenticated award and arbitration agreement, with certified translations where needed; identify assets in Pakistan early; and budget for time — duration remains the main weakness of enforcement here. See our Dispute Resolution practice and international clients page.
Frequently asked questions
Is Pakistan a party to the New York Convention?
Yes — implemented through the 2011 Act.
Can a Pakistani court review the merits of a foreign award?
No; refusal is limited to Article V grounds and public policy is read narrowly.
What if the counterparty sues in Pakistan instead of arbitrating?
Courts generally stay local proceedings brought in breach of an arbitration agreement.
This article is general information as of October 2026, not legal advice. Rules change; contact the firm about your specific matter.