The Securities and Exchange Commission of Pakistan (SECP) has moved closer to establishing Pakistan’s first dedicated Financial Services Dispute Resolution Centre (DRC), aimed at providing faster, cost-effective and accessible resolution of financial disputes.

The proposed independent not-for-profit institution will serve consumers, investors and financial institutions by offering alternative dispute resolution mechanisms outside traditional court proceedings.

To advance the initiative, SECP held a stakeholder consultation in Islamabad with support from the U.S. Department of Commerce’s Commercial Law Development Program (CLDP) and Singapore’s Financial Industry Disputes Resolution Centre (FIDReC).

The consultation brought together representatives from the judiciary, financial regulators, PSX, PMEX, CDC, NCCPL, MUFAP and the insurance sector to discuss the framework for the proposed center.

SECP Chairman Dr. Kabir Ahmed Sidhu highlighted the growing global importance of mediation and alternative dispute resolution in improving investor confidence, reducing litigation costs and strengthening financial markets.

Participants broadly supported the proposal, viewing the DRC as an important step toward enhancing consumer protection, improving dispute resolution efficiency and strengthening trust in Pakistan’s financial system.