Arbitration is one of the prominent and widely practiced forms of Alternate Dispute Resolution. Different countries are strengthening their alternate dispute resolution mechanism, and focusing on arbitrations is a very important edge. Pakistan is in the phase of developing effective laws and policies to strengthen the process of arbitration. The Pakistan Arbitration Act of 1940 is very important to discuss and along with domestic laws the applicability of the international conventions must be discussed. This paper analyzed the situation of arbitration laws in Pakistan with respect to both the domestic laws and international laws applicable in the country.