Dispute resolution mechanism for China Pakistan economic corridor to resolve legal and commercial problem.

Abstract

China-Pakistan Economic Corridor is a bilateral agreement between China and Pakistan. Both countries have concurred to construct one Belt One Road extends more commonly known as China-Pakistan Economic Corridor is anticipated to bring almost both peace and prosperity in South Asia1. CPEC is a bilateral agreement to enhance the economical activities between both countries and across the globe. At the larger extent this mega project will definitely improve the lives of the people of both states due to commercial activities ,improving infrastructure, reducing energy crisis, promoting bilateral connectivity, people to people contact and other trade related high potential activities. China is economically stable and becoming more stable with every passing day however it is facing some hurdles in trade through sea, on the other hand Pakistan is economically unstable and there is a need of commercial activities which help to make stable the economy of the country. Both countries are getting advantages from this bilateral agreement getting benefits from different perspective of development and other strategic point of view. Pakistan is proving china a safe and shortage routs for China on the other hand china is investing its billion dollars in Pakistan. It is a collective effort of both states to enhance the socio-economic condition, and geopolitical importance of both states. CPEC is the collective effort of both countries to achieve cooperation in different field of life including economic, telecommunication, energy, defense, science and technology. Furthermore this project aims to enhance the people to people contact of the states in order to strengthen the relation between the states which will definitely help in development in all sectors of commercial natures primarily2. There is no doubt about good relation between the states but when there is an agreement then there is a need of mechanism to resolve the legal as well as commercial issues which may arises between the parties. As Pakistan and China has different cultural, political and judicial system so a question arise that what kind of judicial system will be adopted in case of any grievances and dispute arise between the parties .If further discuss in depth then the parties may be the state or Public and private companies and the dispute may be commercial as well as legal in nature. For the sake of strengthen the relation of the states and convenience of the investors there must be a particular and separate platform to resolve the legal and commercial disputes arises out of China-Pakistan economic Corridor. Dispute resolution mechanism is very important in trade and agreements and in its absence state lose the confidence of foreign investors, similarly Pakistan is at its high risk in case of CPEC, due to lack of exclusive proper forum for dispute settlement, therefore, many analyst and critics considering it may be the reason of huge set back of this mega project. However, China has been worked on this legal side and established International commercial court which aims to resolve all BRI disputes, however china is facing problem to convince all BRI countries to be agreed upon these special courts. If we only rely upon Chinese court in this regard it will be disaster for the relation as well as the investment of the foreign and regional investors3.