Guaranteeing the Guarantee Law in Pakistan : The UNCITRAL Convention and the Guarantee Laws of Pakistan, the UK And the USA

This article intends to provide a comparative analysis of the UNCITRAL Convention on Independent Guarantees and Standby Letter of Credit and the relevant laws of three jurisdictions, i.e. UK, USA and Pakistan with a view to explain their similarities and differences. The objectives are indeed not to yield any innovative ideas but to shed light on the Pakistani law as compared to the international standards set forth by the UNCITRAL Convention and adherence to these standards by laws of advanced jurisdictions like UK and USA. After a brief description of standby letters of credit and independent guarantee, we shall introduce the UNCITRAL Convention, followed by a comparative analysis. In our conclusion we shall endeavour to justify the need for Pakistan to accede to the Convention or bring legislation to conform to international standards in the field of guarantee law