Mediation In
Islamabad, Pakistan

State Laws

Islamabad Capital Territory operates under the federal Alternative Dispute Resolution Act, 2017 which provides the legal framework for mediation in ICT. The Act defines mediation as a structured process where a mediator facilitates communication and negotiation between parties to reach a voluntary mutually satisfactory agreement. The Islamabad High Court issued Mediation Practice Direction (Civil) Rules in 2023 to regulate mediation practice in civil disputes. The ADR Mediation Accreditation (Eligibility) Rules 2023 establish qualification requirements for mediators and accreditation standards for ADR centres. Pakistan signed the Singapore Convention on Mediation in May 2025 to strengthen international enforcement of mediated settlement agreements.

Court-Mandated Programs

Courts in Islamabad refer civil matters to ADR on the first date of appearance of all parties, except where any party does not agree to ADR. The court may frame issues with consent of parties before referral to facilitate settlement. Courts may refer matters to ADR at any stage of proceedings with consent of all parties. The court appoints a Neutral or refers the matter to an ADR Centre. Where one or both parties are women, the Neutral shall preferably be a woman. If parties are women, the matter shall preferably be dealt with by a team including a woman. The International Mediation and Arbitration Center (IMAC) under the Ministry of Law and Justice provides internationally aligned arbitration and mediation services.

Licensing Requirements

The federal government notifies a panel of Neutrals for each district from amongst lawyers with at least seven years practising experience, retired judges, retired civil servants, ulama, jurists, technocrats and experts of repute and integrity. Due representation is given to women with prescribed qualifications. The government may arrange training courses for Neutrals. ADR centres and mediators must be accredited under the ADR Mediation Accreditation (Eligibility) Rules 2023. Accredited mediators must be trained and certified by organisations listed in the rules including International Mediation Institute, Centre for Effective Dispute Resolution, and Civil Mediation Council of United Kingdom.

Local Court Systems

Islamabad has the Islamabad High Court as the highest court in the territory. The subordinate judiciary includes civil courts, family courts and other courts notified by the government for ADR purposes. The court system operates in Urdu and English. The Islamabad High Court has established practice directions for mediation in civil disputes. Courts have discretion to refer cases to mediation and can stay proceedings during ADR. The judicial system actively supports ADR as a means to reduce court backlog and provide inexpensive and expeditious justice.

Fee Structures

Costs and fees of ADR shall be borne by parties in such proportion as may be mutually agreed upon, failing which the court shall determine the proportion. Court annexed mediation through IMAC may have specific fee structures. Private mediation services charge fees based on complexity and duration. The ADR process is generally less expensive than formal litigation. The government may provide fee assistance in certain cases through legal aid programmes.

Bar Association Rules

The Islamabad Bar Association provides guidance to lawyers on mediation practices. Lawyers must advise clients about ADR options and participate effectively in mediation proceedings. The bar association promotes the use of mediation as a means of decongesting courts and providing efficient dispute resolution. Lawyers can serve as Neutrals on the government panel with seven years practising experience. The legal profession in Islamabad is increasingly recognising mediation as a valuable tool for dispute resolution.

Regional Dispute Patterns

commercial disputes in government and corporate sector, family mediation including divorce and child custody, property and real estate disputes, employment disputes in public and private sector, contractual disputes in federal government contracts

Legal Framework

Mediation in Pakistan follows the Alternative Dispute Resolution Act 2017, which provides comprehensive procedures for mediation, arbitration, and conciliation. Research indicates that in 2026, the federal government may have enacted the Alternative Dispute Resolution (Amendment) Act, 2026, introducing significant reforms by making ADR mandatory for specified categories of disputes. A new Section 3A was reportedly inserted, making it compulsory for courts to refer all matters listed in Schedule-II to ADR, marking a major departure from the previous discretionary framework. Schedule-II contains civil, commercial, financial, and family-related matters considered suitable for settlement outside court. Section 25A grants the federal government authority to amend the schedules in consultation with the Islamabad High Court through official notification. Research indicates that the Income Tax Ordinance (Third Amendment) Act, 2026 may have substituted the ADR scheme at section 134A, streamlining the ADR mechanism for tax disputes with changes to committee composition, timeline extended from 60 to 90 days, and new appeal rights for state-owned entities. Verify these 2026 amendments against official Pakistani legislation databases. Several provinces have enacted their own ADR statutes: Punjab ADR Act 2019, Khyber Pakhtunkhwa ADR Act 2020, and Balochistan ADR Act 2022. The Family Courts Act 1964 requires judges to attempt reconciliation in family disputes. Pakistan signed the Singapore Convention on Mediation on 17 December 2024, becoming the 58th signatory.

While Pakistan operates under this legal framework, The Olive Branch's remote mediators bypass local court backlogs by providing swift, confidential, and mutually agreed-upon resolutions online.

Court System

The 2026 ADR Amendment Act fundamentally changes the court-ADR relationship by making ADR mandatory for disputes listed in Schedule-II rather than discretionary. Courts are now legally bound to initiate ADR before proceeding with formal litigation for civil, commercial, financial, and family-related matters. The Income Tax Ordinance (Third Amendment) Act 2026 embeds ADR within the judicial process by empowering the Federal Constitutional Court, Supreme Court, or High Court to refer pending tax disputes to the Board for resolution through an ADR Committee, either on their own motion or upon application. For SOEs not wholly owned by the federal government, pending High Court petitions abate but they have a right of appeal to the Federal Constitutional Court or Supreme Court within sixty days. The Supreme Court has consistently emphasized a pro-ADR approach, holding that courts should encourage arbitration and mediation to alleviate the overburdened judicial system. On 6 May 2025, the Supreme Court issued a directive emphasizing a pro-mediation bias and establishing mediation as the first resort in litigation. The judiciary has urged judges and lawyers to identify disputes suitable for mediation at earliest stages, calling for a cultural shift toward mediation as a first option rather than last resort.

Mediator Regulations

Mediator accreditation in Pakistan is regulated by the ADR Mediation Accreditation (Eligibility) Rules 2023, which establish training and certification requirements nationwide. The Pakistan Mediators Association (PMA) has an IMI Certified Mediator Training Programme approved in August 2020, delivering courses in both English and Urdu. MICADR maintains a panel of nationally and internationally accredited mediators and arbitrators, including former High Court and Supreme Court judges. The Mediation Practice Direction (Civil) Rules 2023 provide procedural consistency for court referred mediation. Continuing professional development is encouraged through advanced training programmes. Accredited mediators must meet established competency standards to serve on court panels and in private practice. The certification system ensures quality standards for mediators across federal and provincial jurisdictions.

Cultural Approach

Pakistan has a strong tradition of consensual dispute resolution through community mechanisms including jirga, panchayat, and community elders. These traditional practices demonstrate that consensual dispute resolution is not unknown in Pakistani culture. The concept of musaalihat (reproaching or conciliation) in Urdu and maslaha in Arabic, which defines the basis of law in accordance with Islamic jurisprudence, underpins modern mediation practice. Islamic principles emphasise reconciliation and maintaining relationships. The cultural preference for harmony and community consensus supports mediation's collaborative nature. However, there is an important distinction between customary practices and professional mediation, which is underpinned by neutrality, voluntariness of outcome, procedural justice, and enforceability. The Supreme Court has recognised mediation as a dignified and culturally attuned process.

Typical Costs

Mediation costs in Pakistan vary by institution and case complexity. Court-annexed mediation through the ADR Act 2017 is generally low-cost as part of court proceedings. Private mediation through institutions like MICADR and IBA-ADRIC charges fees based on case complexity and mediator expertise. The IBA-ADRC has a structured fee schedule covering mediator attendance for up to 8 hours, with additional fees for extended sessions. MICADR operates on a fee-for-service basis. Police station Dispute Resolution Councils (DRCs) provide free mediation for minor conflicts. Costs are typically shared between parties unless otherwise agreed. The cost savings compared to litigation are significant, with mediation typically resolving disputes in weeks rather than years. The economic advantages of mediation include substantial savings in legal costs and time for Pakistani businesses.