Mediation is an increasingly recognized method of alternative dispute resolution (ADR) that offers significant economic benefits for businesses in Pakistan. The research explores how mediation can address the pressing challenges of high litigation costs, prolonged case durations, and strained business relationships, which are common in the traditional court system. The purpose of the study is to evaluate mediation’s potential to save costs and time while fostering sustainable dispute resolution practices in the Pakistani business environment. The study employs an analytical approach, drawing on economic data, case studies, and comparative insights to examine the cost-effectiveness and efficiency of mediation. Key findings indicate that mediation reduces legal fees, administrative expenses, and operational disruptions by resolving disputes swiftly and amicably. Additionally, mediation helps preserve business relationships and protects reputations due to its confidential and non-adversarial nature. Despite these advantages, the study identifies barriers to mediation adoption in Pakistan, such as cultural resistance, lack of awareness, and inadequate legal frameworks. It concludes with recommendations to promote mediation, including legislative reforms, awareness campaigns, and the establishment of more mediation centres. Overall, the research underscores the economic advantages of mediation as a viable alternative to litigation for businesses in Pakistan.
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