Judicial delays hamper economic growth

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LAHORE: Pakistan’s judicial disqualification has caught trillions of rupees in non -resolution disputes, slowing down economic activity. Major reforms and dispute resolution procedures in trade courts are essential to unlocking this capital and promoting investment.

In pending tax cases, the Federal Board of Revenue (FBR) has about Rs 3 trillion, while banks are struggling to recover default loans due to prolonged litigation. In 2023, non -performance loans (NPLS) crossed Rs 1.1 trillion in 2023, of which a significant portion is tied to legal battles. Due to the implementation of the non -resolution agreement, many companies are delayed in payment, and the land -related legislature is shut down, which hinders the business expansion.

The courts of Pakistan have a large -scale backlog burden, it takes years to resolve some issues. Bureaucratic defects and lack of judicial automation slow down resolution of dispute resolution. The country is easily bad for the implementation of the World Bank’s deal, and the political or financial influence sometimes affects judicial decisions.

Effective financial dispute resolution is very important for economic stability, investor confidence and business growth. A well -working judicial system ensures the implementation of a contract, as business and investor rely on the courts to maintain contracts. Delays in justice increase legal costs, discourage investment and disrupt economic activity. A more effective judiciary will promote the confidence of investors, as both domestic and foreign investors look for jurisdictions where disputes are resolved rapidly and fairly. The default and financial fraud solution will also help banks recover loans, which can reduce non -performing assets.

India’s judicial system in resolving trade dispute, while slow, is relatively better. Special courts like the National Company Law Tribunal (NCLT) handle corporate disputes, though the delay remains a challenge. Introduced in 2016, the insurance and bankruptcy code (IBC) has improved the resolution of corporate loans, but still faces a back blog.

Bangladesh’s judiciary is even more slower than India and Pakistan, which is struggling with the backbone of the case and the implementation of the agreement. Although the country has set up trade courts, the delay remains a major problem. Bangladesh is less than India in the implementation of the World Bank Agreement.

On the contrary, Malaysia has a very effective judicial system in the region for financial conflicts. Special trade courts provide rapid track disputes, while transparent and technology -powered legal processes make the country attractive to business. Malaysia is the highest in the region, followed by Indonesia, which struggles with corruption. India is improving but it is slow, while Pakistan and Bangladesh are left behind due to disqualification and implementation of the agreement.

Singapore, the United Kingdom, and the United States have some effective judicial systems to resolve trade disputes. Singapore courts resolve matters within a few months, its international trade court (SICC) has effectively handled cross -border disputes. Arbitration and mediation are widely used, which reduces the burden on the courts, while the hard deadline ensures rapid decisions. The Singapore World Bank’s business index is among the higher countries to easily implement a contract.

The UK is considered a global legal hub, London courts handle many international trade disputes. The absence of political interference ensures fair decisions, while the UK’s strong joint law system makes it a reliable jurisdiction for business and financial agreements. Arbitration centers such as the London Court of International Arbitration (LCIA) play an important role, usually takes one to two years in complex cases.

In the United States, the implementation of the agreement and the reservations of investors are strong. Delaware is a priority jurisdiction because of its effective courts for corporate disputes. Arbitration and class action cases provide alternative legal ways, but the costs of legalization can be a barrier. Repeated legalism also increases complications, and resolution times last from one to three years, sometimes of major corporate conflicts. Long. Although conflict resolution is the best US status in the US, high costs make the challenges challenge of small businesses.

Pakistan needs immediate judicial reforms to improve its economic competition, accelerate dispute resolution, reduce back blogs and restore investors’ confidence.