Alternative Dispute Resolution (ADR) in Pakistan refers to methods used to resolve legal disputes outside the traditional court system. These mechanisms include arbitration, mediation, conciliation, and negotiation, providing a more efficient and less adversarial approach to conflict resolution. ADR is increasingly recognized in Pakistan as a way to reduce the burden on the courts, which are often overwhelmed with cases, and to offer quicker, cost-effective solutions. Arbitration is one of the most common forms of ADR in Pakistan, where a neutral arbitrator is appointed to make a binding decision on a dispute, particularly in commercial and contractual matters. The Arbitration Act of 1940 governs arbitration proceedings, providing a legal framework for both domestic and international arbitration. Mediation and conciliation involve a neutral third party who facilitates discussions between disputing parties, helping them reach a mutually agreeable solution. These methods are often used in family, civil, and business disputes and are supported by Pakistan's legal framework, such as the Small Claims and Minor Offenses Courts Ordinance 2002, which encourages the use of ADR in minor disputes.
ADR in Pakistan is gaining popularity as it offers a less formal, more flexible, and timely alternative to the traditional court process, helping to ease the pressure on the judiciary and promote amicable resolutions in a wide range of legal issues.