PAKISTAN’S economic crises are often described in terms of inflation, taxation and political instability. But a quieter obstacle to growth lies in the unpredictability of its legal system.

The core objective of the courts in a successful mercantile society is to ensure that capital keeps moving through swift and predictable enforcement of contract. In Pakistan, the simplest commercial cases can take years before judgement. During this delay, the potency of even the most unambiguously drafted contractual language begins to erode. And this is for the simpler matters.

Once questions of interpretation or commercial complexity arise, the delays multiply. Additional hearings, expert evidence and excess procedure stretch an already remarkable timeline. By the time it finally decides, the court is simply resolving a past transaction, as the markets have moved on. A dispute over a machinery installation, for instance, may reach judgement only after currency devaluation, rising input costs and regulatory shifts have rendered the entire contract commercially obsolete. The court may even decide correctly on paper, yet the value the contract was meant to protect has long since disappeared. Enforcement delayed is enforcement........

© Dawn