Identifying deficiencies and challenges in the existing mechanisms for resolving commercial disputes in China–Pakistan CPEC projects

Purpose This study aims to analyse the efficacy of dispute resolution frameworks functioning within the ambit of the China–Pakistan Economic Corridor (CPEC) by way of comparing the civil judiciary of Pakistan with the International Commercial Court of China (CICC). Design/methodology/approach A comparative doctrinal analysis of the law, guided by institutional theory and legal pluralism, is conducted. The four-dimensional assessment framework of jurisdictional scope, procedural efficiency, enforceability and accessibility is used. The CICC Procedural Rules 2018, the Pakistan Civil Code of Procedure 1908 and the Pakistan Arbitration Act 1940 serve as primary source material. Relevant ICSID arbitration decisions and peer-reviewed academic works between 2020 and 2025 form the secondary source material. Findings While CICC demonstrates high procedural sophistication through special international commercial jurisdiction and a fully digitised case management process, Pakistan’s judiciary remains plagued by inherent delays, increasing backlog of cases and lack of commercial law expertise. These structural weaknesses lead to reduced confidence among cross-border investors, forum shopping abroad, low enforcement certainty for the CPEC stakeholders and high-profile litigation cases, which are exemplified by the use of neutral arbitration clauses for dispute settlement within CPEC contracting practices. Originality/value The study provides conceptually and empirically relevant insights regarding comparative commercial law reform in belt and road initiative (BRI) host economies with special focus on the CPEC project lifecycle stages – construction and post-completion. Specifically, the study develops concrete recommendations for reforms in each country jurisdiction to improve the dispute resolution process. These include the establishment of specialised commercial benches in Pakistan, digitisation of procedures and bilateral cooperation in law. All such measures shall be carried out in accordance with Pakistan’s existing investor protection laws and the one-stop dispute resolution mechanism of CICC.