Sprinkle chicken with 1/2 teaspoon salt and pepper. Melt 1 tablespoon butter in a Dutch oven over medium-high heat. Add chicken, and cook 5 minutes, browning on all sides. Remove chicken from pan; cover and keep warm.
Melt 1 tablespoon butter in Dutch oven over medium heat. Add onion; cook 10 minutes or until golden brown, stirring occasionally. Add saffron and garlic, and cook 1 minute, stirring constantly. Stir in sugar and rind; cook 1 minute, stirring constantly. Add 1/4 teaspoon salt, broth, rice, and raisins; bring to a boil. Add chicken, nestling into rice mixture. Cover, reduce heat, and simmer 25 minutes or until rice is tender. Let stand 5 minutes. Sprinkle with pistachios.