The Arbitration Agreement and Foreign Arbitral Awards Bill 2009 is likely to be presented in the upcoming session of National Assembly, which is aimed at safeguarding foreign direct investment in the country. Sources said after the passage of the bill by National Assembly's Standing Committee on Law and Justice, it has been included in the agenda of upcoming session of the lower house, starting from September 20.
At present, there is no law to protect foreign investors in case of any dispute with local partner. The Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Ordinance have already lapsed. The Supreme Court, in its July 31, 2009 verdict, had given 37 ordinances including arbitral awards, a life of 120 days and asked the government to get these passed from parliament. This ordinance was re-promulgated but lapsed again.
The government has taken almost 10 months to present it before the National Assembly to make it an Act of parliament. Foreign investors are persuading the Board of Investment to take immediate steps for the promulgation of foreign investment bill 2009 as the law and justice committee had passed the bill on September 16.
In the last meeting, the committee discussed the Pakistan Muslim League-Nawaz's Zahid Hamid's dissenting note. The committee unanimously adopted that in case of any inconsistency in domestic laws, the text of the international convention would prevail.