The reconstruction of the investment dispute settlement: lessons for Pakistan under ICSID

Abstract

Globalization has a great impact on trade-related investments around the globe where developed countries seek resources in developing countries through Bilateral Investment Treaty (BIT) or International Investment Agreements (IIAs). Either way, it is foreseeable that the investment-led agreements may give rise to investment disputes where conflict of interest is involved. For this very purpose different international arbitration institute has been established and the International Centre for Settlement of Investment Disputes (ICSID) is one of them. However, ICSID has been criticized for the fact that its decision-making is not completely fair and it favors the developed countries by awarding against the developing countries which restricts the developing country from economic development. Pakistan is also a member of ICSID and there have been several instances where Pakistan had to face unfair behavior from ICSID in a matter of investment disputes which has set back Pakistan way beyond its capacity to stabilize its economy. Therefore, this paper aims to scrutinize the procedure of ICSID along with that, the importance of appellate facilities shall also be highlighted to protect the rights of host-developing states.