Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum & All Karachi Industrial Alliance, has praised the Law and Justice Commission of Pakistan for emphasizing Alternative Dispute Resolution (ADR) to address the growing issue of banking defaults. During a high-level meeting on April 30, 2026, in Islamabad, Mian Zahid Hussain and FPCCI President Atif Ikram Sheikh highlighted the immense backlog in the judicial system, with over 2.37 million cases pending.
Banking tribunals and civil courts are particularly overwhelmed with around 30,000 suits related to non-performing loans, which have immobilized substantial capital and hindered economic growth. The session was chaired by the Chief Justice of Pakistan and included key stakeholders, including Federal Finance Minister Muhammad Aurangzeb and Attorney General Mansoor Usman Awan.
Mian Zahid Hussain noted that traditional litigation in banking cases can span several years, inflating legal costs and eroding asset value. He emphasized that the current level of non-performing loans is a barrier to credit growth for Small and Medium Enterprises. By implementing effective ADR mechanisms, such as commercial mediation and arbitration, the backlog can be cleared, allowing capital to flow back into the economy. Hussain assured that the FPCCI backs the Chief Justice’s initiative to integrate ADR in the financial sector.
At the meeting, Sheikh proposed establishing dedicated mediation centers for corporate disputes to alleviate the burden on the courts and help businesses avoid the pitfalls of public litigation. Out-of-court settlements could enable debt restructuring, thereby preserving jobs and sustaining operations. In closing, Mian Zahid Hussain urged the State Bank of Pakistan and the Ministry of Finance to swiftly implement policy recommendations, asserting that a mandatory ADR protocol before initiating banking recovery cases is essential for economic progress. He stressed that fostering a culture of commercial conciliation could significantly enhance Pakistan’s business environment and attract foreign investment.
