Mediation in Pakistan is a voluntary, confidential, and non-adversarial dispute resolution process where a neutral third party facilitates discussions between disputing parties to help them reach a mutually agreeable solution.

It's increasingly recognized as an effective method to reduce court burdens, especially in family disputes, commercial conflicts, and workplace disagreements. Supported by the ADR Act, 2017, mediation emphasizes neutrality and confidentiality.

Arbitration in Pakistan is a formal alternative to litigation, where parties agree to resolve conflicts through impartial arbitrators whose binding decisions are enforceable.

Governed by the Arbitration Act of 1940, it's commonly used in commercial disputes. While effective, there's growing momentum to modernize the framework to align with international standards like UNCITRAL.