China–Pakistan Economic Corridor (CPEC) Disputes: Arbitration as a Strategic Tool for Investment Security

Abstract

This study examines that how arbitration can be strategically utilized to enhance investment security in China-Pakistan Economic Corridor (CPEC) projects, focusing on disputes related to payments, tariffs, construction delays, and regulatory changes. CPEC projects face frequent commercial and regulatory disputes that threaten investment stability. Traditional dispute mechanisms may be slow or biased, reducing project predictability and investor confidence. Arbitration offers a potentially neutral and enforceable framework to manage these risks. A qualitative doctrinal analysis was conducted, supported by a case study of commercial arbitration, investment treaty arbitration, and multi-tier dispute resolution mechanisms. Arbitration provides neutrality, enforceability, and interim relief. Multi-tiered procedures and institutional arbitration reduce investment risks. Strategic arbitration design enhances project predictability, bankability, and investor confidence. CPEC stakeholders should adopt structured arbitration frameworks with clear interim measures and multi-tiered procedures to cultivate a secure investment environment.