Public policy: a roadblock to the execution ogf foreign arbitral award (A comparative analysis of Pakistan with France, USA and England)

Abstract

The International Public Policy of Pakistan with the aim to distinguish with other countries is entangled between contractual laws, domestic arbitration, loose & broad definition by Courts; hence hampering the execution of foreign arbitral award. The study seeks to better comprehend and investigate the doctrine of public policy as a basis for refusing enforcement of foreign arbitral awards. What complicates matters is the absence of a universally accepted definition of public policy or practise in its implementation, which differs from state to state. The vagueness, subjectivity, and unpredictability connected with the notion of public policy have hindered the efficacy of international commercial arbitration on many occasions. Pakistan, which is in dire need of international investment and access to international markets for its products, needs to come out with strong and predictable public policy mechanism. In order to discuss public policy of Pakistan, mechanism of developed nations will be revisited, loopholes in their policies will be understood and almost all international conventions containing this concept will be briefly analyzed. Case studies from all the comparative states will be done to understand the influence of domestic and international public policy. New phenomenon arising in the name of Transnational Public Policy will also be explored. This study argues that Pakistani courts need to redefine the categories of public policy keeping in consideration the growing demands of international trade and commerce.