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Frequently Asked Questions
These FAQs are designed to assist individuals and organizations considering SARCO arbitration or mediation for dispute resolution.
If your question isn’t covered, please contact us:
The SAARC Arbitration Council (SARCO) is a specialized regional body established under the South Asian Association for Regional Cooperation (SAARC), comprising Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.
Headquartered in Islamabad, Pakistan, SARCO provides a neutral forum for resolving commercial, investment, and other disputes through arbitration and mediation across the SAARC region and beyond.
SARCO aims to:
• Provide a regional platform for the fair, fast, and affordable settlement of commercial, investment, and other disputes through arbitration and
mediation.
• Strengthen arbitral institutions, encourage regional cooperation, and promote international standards of dispute resolution across the SAARC
region.
• Supports ad hoc arbitration, helps enforce arbitral awards, and maintains panels of qualified arbitrators and expert witnesses to ensure access
to skilled professionals and reliable dispute resolution services.
English is the default language for arbitration unless parties agree otherwise.
For mediation, if the language is not agreed upon, SARCO or the mediator will determine it, considering the regional context.
Jurisdiction and Scope
SARCO administers arbitrations involving:
• Commercial or investment matters
• Trade disputes
• Any other disputes the parties agree to refer to SARCO
Yes. As part of its mandates, SARCO provides confidential, cost-effective mediation through trained mediators from its official panel, with administrative and procedural support.
Yes. Parties may choose mediation at any stage, including during ongoing arbitration or court proceedings, without compromising their legal rights, provided they take the necessary steps to safeguard those rights.
No. Mediation is optional unless required by contract. Parties can proceed directly to arbitration, though SARCO encourages amicable settlement first.
Yes. SARCO is open to private and public entities, including state-owned enterprises, provided both parties agree to refer their dispute under the SARCO Arbitration or Mediation Rules.
No. While SARCO primarily serves SAARC countries, parties from any country may use its services if they mutually agree to apply the SARCO Rules. The Rules do not restrict participation to SAARC Member States.
Arbitration & Mediation Rules
SARCO applies:
• SARCO Rules of Procedure for Arbitration (based on the UNCITRAL Model Law)
• SARCO Rules of Procedure for Mediation
Both were updated in 2024 and effective from 1st January 2025.
Arbitration under SARCO follows the SARCO Rules, incorporating any agreed industry-specific modifications and the parties’ chosen law. If no law is specified, the tribunal determines the applicable law in accordance with the seat of arbitration.
Mediation under SARCO is a flexible, party-driven process, guided by the SARCO Mediation Rules. Proceedings are confidential, tailored to each case, and designed to achieve timely and fair resolution.
You may:
• Include the SARCO Model Clause in your contract, or
• Mutually agree to refer an existing dispute to SARCO.
SARCO assists with appointing arbitrators/mediators and administering the process.
Appointments
• By SARCO: if parties cannot agree.
• By parties: jointly or individually (SARCO may step in if one party fails).
• By arbitrators: party-appointed arbitrators or if arbitrators cannot agree, SARCO will make the appointment.
SARCO ensures all arbitrators are independent and impartial.
• By SARCO: with parties’ consent.
• By parties: one or more mediators by agreement.
SARCO considers impartiality, nationality, expertise, and diversity when appointing mediators
Yes. SARCO maintains an official Panel of Arbitrators, which also serves as its Panel of Mediators, nominated by SAARC Member States for three-year terms. Parties may select from this panel or propose others.
Although SARCO does not prescribe formal qualifications, arbitrators are experienced professionals from law, trade, investment, and related fields. Nominated by Member States for their expertise and integrity, all arbitrators are nationals of SAARC Member States.
SARCO is developing a Panel of Expert Witnesses, nominated by Member States for three-year terms. Experts typically hold postgraduate degrees, have arbitration experience, and belong to recognized professional bodies.
Experts help the arbitrators understand complex, technical, or specialized issues that go beyond their general expertise.
While parties may appoint arbitrators of their choice, a neutral nationality is preferred for the sole or presiding arbitrator to ensure impartiality. Appointments can be challenged on grounds of bias, and SARCO may intervene to uphold fairness, balancing party autonomy with the integrity of the tribunal.
Procedures and Hearings
Unlike court proceedings, arbitration and mediation. offer a highly flexible approach to resolving disputes. Both arbitration and mediation processes are flexible and case-specific, tailored by parties and neutrals to ensure efficient and fair resolution.
SARCO provides neutral administrative and procedural support for arbitration and mediation, without determining the outcome. It ensures fairness, confidentiality, and integrity throughout the process.
Yes. SARCO may serve as an appointing authority or administrative body for arbitrations under other rules, such as UNCITRAL, if the parties agree. However, it cannot automatically administer proceedings under the rules of other arbitral institutions unless this is explicitly provided for in the arbitration agreement.
Hearings may be conducted in-person, virtually, or in a hybrid format, depending on the complexity, cost, and convenience of the case. Virtual proceedings are ideal for procedural matters and international disputes, while in-person hearings are preferred for complex cases, witness testimonies, and final hearings. This flexible approach ensures efficiency, accessibility, and convenience throughout the proceedings.
While SARCO does not have a formal “fast-track” procedure, parties can expedite dispute resolution by agreeing to accelerated procedures, appointing emergency arbitrators for urgent interim relief, or adopting streamlined schedules with flexible timetables and primarily written or virtual processes. In mediation, parties may set the procedure themselves, or the mediator can determine it if no agreement is reached.
Legal Framework and Enforcement
An award is generally issued within six months of the main submissions, extendable with party consent or SARCO approval. This structure aims to ensure that arbitration is conducted efficiently while allowing flexibility when needed.
Yes. SARCO awards are final, binding, and enforceable under the New York Convention, which has been ratified by most SAARC Member States. SARCO also assists parties with the necessary documentation for court enforcement, including filing and registration.
No. Awards issued under SARCO are final and cannot be appealed on their merits, making the process faster and more cost-effective than traditional litigation or arbitration. Challenges in court are limited to specific legal grounds. While SARCO does not review awards, it ensures quality through rigorous procedures and the careful appointment of arbitrators and mediators.
Costs and Fees
SARCO fees cover arbitration and mediation fees, administrative charges, and related expenses. While SARCO receives funding from Member States, these fees are charged solely to cover service costs, ensuring fairness and competitiveness. Registration and appointment fees are fixed and non-refundable.
• Arbitration: usually the losing party, unless the tribunal decides otherwise.
• Mediation: generally shared equally, unless the settlement agreement specifies otherwise.
Before proceedings commence, SARCO requires equal advance deposits from the parties to cover the estimated costs of arbitration or mediation. Additional deposits may be requested if necessary. All payments are invoiced in USD (or equivalent) and are subject to applicable taxes and bank charges.
No. SARCO is a neutral administrative body and does not provide financial or legal assistance. Parties are responsible for their own representation costs. Where cost is a concern, parties may consider seeking pro bono services, adopting expedited procedures, or agreeing on streamlined schedules to achieve quicker and more cost-effective resolution.
Confidentiality
Yes. All SARCO proceedings, awards, and settlements are strictly confidential to protect sensitive information and maintain trust in the process.
Hearings are closed to the public, and documents are not disclosed except as required by law or with party consent.
Accessibility and Support
Yes. Parties may be represented or assisted by persons of their choice—legal or non-legal—and may also choose to represent themselves. Representation or assistance is often beneficial in complex or cross-border disputes.
SARCO’s website provides access to its rules, model clauses, panel information, and event updates. It also manages general inquiries and certain administrative matters via email. Virtual hearings and online case administration are supported, with enhanced digital tools under development to further improve accessibility and efficiency.
Training and Capacity Building
As part of its mandate, SARCO organizes workshops, seminars, and webinars in collaboration with national and international partners to strengthen arbitration and mediation capacity across the SAARC region. These programs aim to enhance the skills of arbitrators and mediators and promote awareness of modern dispute resolution practices.
SARCO offers occasional internship and research opportunities (onsite and remote) focused on legal research, event organization, and institutional development. These programs aim to build legal capacity and support SARCO’s mission of advancing regional arbitration across the SAARC Member States.
Members are nominated by their respective governments for three-year terms. Applicants must hold a law degree (preferably a Master’s), be accredited by a recognized ADR body, and have regional or international arbitration experience, including work with arbitral tribunals or institutions.
Collaboration with National Institutions
SARCO partners with national institutions and arbitration centers across SAARC Member States to promote regional cooperation and capacity building. Through joint training programs, knowledge sharing, cooperation among arbitrators, and collaborative initiatives, SARCO works to develop a unified regional dispute resolution system. These partnerships strengthen regional arbitration, promote consistent standards, and enhance access to effective and harmonized dispute resolution throughout the SAARC region.
Yes. SARCO may co-administer cases or share facilities with national arbitration centers for greater efficiency in regional or cross-border disputes.
Other Information
Parties may include SARCO’s model clauses in their contracts or refer to them when submitting disputes for arbitration or mediation under SARCO. These model clauses are available in the SARCO Arbitration and Mediation Rules.
Parties may select the seat or venue of arbitration in accordance with SARCO’s principle of party autonomy and the laws of the chosen jurisdiction. If no selection is made, the seat or venue will be determined by SARCO or the arbitral tribunal. Mediation sessions, however, are held at the SARCO Secretariat. The chosen location determines the applicable governing law and enforcement process.
SARCO provides fair, transparent, and independent dispute resolution for all SAARC Member States. Guided by a balanced governing board and a professionally selected Panel of Arbitrators, it respects party autonomy while upholding the highest standards of impartiality and integrity. Legal immunities and transparent practices further safeguard SARCO’s independence and fairness in every dispute it handles.
Disclaimer: The information in these FAQs is for general purposes only and is not professional advice.
We are not responsible for any errors or actions taken based on this content. For personalized guidance,
please consult a qualified professional.
English
Afghanistan
Bangladesh
Bhutan
India
Maldives
Nepal
Pakistan
Sri Lanka
