Islamabad: The International Monetary Fund (IMF) has flagged Pakistan’s weak property rights protections and poor contract enforcement as major impediments to attracting foreign investment.
The concerns were raised during a meeting in Islamabad between the IMF mission and the Supreme Court Bar Association of Pakistan (SCBAP), led by President Mian Muhammad Rauf Atta. The discussion focused on judicial efficiency, legal reforms, and measures to create an investor-friendly legal framework.
The presidents of the high court bar associations of Balochistan and Sindh, Mir Atta Ullah Langove and Barrister Sarfraz Metlo, were also present during the over hour-long session.
Judicial inefficiency, lack of contract enforcement, and encroachments on property rights were highlighted by the IMF mission as critical challenges that discourage foreign direct investment (FDI) in the country.
Responding to these concerns, Atta outlined ongoing judicial and legislative efforts to improve the legal environment. He highlighted recent initiatives introduced by the Chief Justice of Pakistan (CJP), including an e-filing system to replace outdated paper filing, revamping of case management systems, and faster disposal of pending cases. Video link hearings have also been introduced to enhance accessibility and efficiency.
He further noted that the 26th Constitutional Amendment was aimed at boosting judicial independence. Under this amendment, a constitutional bench has been formed to hear complex political and constitutional cases, allowing regular benches to focus on routine judicial work.
Performance evaluation systems for judges, the appointment of expert judges in tax and commercial matters, and the formation of tribunals and Alternate Dispute Resolution (ADR) forums were also shared as part of ongoing reforms.
Addressing property rights, the SCBAP president informed the mission that Articles 23 and 24 of the Constitution safeguard the right to own property. He added that the government is actively working to improve enforcement of anti-encroachment laws and has established specialised courts and benches to handle property disputes more efficiently.
Atta acknowledged that procedural inefficiencies continue to delay contract enforcement but assured that steps are being taken to make the legal system more responsive to investor needs.
Both parties agreed that sustainable solutions lie in ensuring political and economic stability, as well as stronger governance rooted in the rule of law.
As a follow-up, the IMF mission is expected to share a formal questionnaire with SCBAP to gather further input and proposals on improving Pakistan’s legal framework for investment.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
