Security issues continue to be a significant barrier for foreign investors in Pakistan, according to the latest findings from the Overseas Investors Chamber of Commerce and Industry (OICCI) Security Survey 2026. The survey indicates that 71% of foreign investors rank security among their top three business concerns, highlighting the ongoing challenges faced by businesses in the region.
Despite some improvements in security conditions in certain areas, the survey, conducted in June among prominent foreign investors, reveals a troubling trend. Many businesses report deteriorating security situations, particularly in Karachi and Balochistan, which remain critical areas of concern.
Survey Findings on Security in Major Cities
The OICCI survey found that 42% of respondents believe the security environment in Karachi has worsened over the past year. In Balochistan, the situation is even more alarming, with 81% of respondents in Quetta and 86% in other parts of the province reporting a decline in security conditions. This deterioration poses significant risks for business operations and investor confidence.
Street Crime: A Growing Concern
Street crime has emerged as the most pressing issue for businesses in Pakistan. The survey indicates that half of the respondents in Karachi reported an increase in street crime, a rise from 45% the previous year. In Quetta, 37% of businesses noted worsening street crime, compared to just 24% in 2025. This increase in criminal activity is a major deterrent for foreign investment.
Declining Confidence in Law Enforcement
Confidence in local law enforcement agencies has also seen a decline. The positive ratings for Karachi Police have dropped to 30%, down from 38% last year. Similarly, the Sindh Police’s rating fell to 16% from 26%. In contrast, there has been a slight improvement in confidence towards the Sindh Rangers and Khyber Pakhtunkhwa Police, indicating a mixed perception of law enforcement effectiveness.
Impact of Geopolitical Tensions
The survey also highlights the effects of regional geopolitical tensions on business operations. Approximately 88% of respondents stated that conflicts in the Middle East have adversely affected their organizations. Key concerns include supply chain disruptions, logistics security, reduced business activity, and employee safety, all of which are critical for foreign investors.
Long-term Confidence Despite Challenges
Despite these significant challenges, the survey reveals that 87% of OICCI member companies are still comfortable holding board and senior management meetings in Pakistan. This reflects a level of long-term confidence in the country’s economic potential, suggesting that while security remains a pressing issue, many investors see opportunities for growth.
Recommendations for Improvement
In light of the survey findings, the OICCI has urged the government to take decisive action to enhance public safety and strengthen policing efforts. The organization emphasizes that a more secure operating environment is crucial for attracting new investments and fostering sustainable economic growth in Pakistan.
- 71% of foreign investors cite security as a top concern.
- 42% report worsening security in Karachi.
- 81% in Quetta and 86% in Balochistan report deteriorating conditions.
- 50% of respondents in Karachi noted an increase in street crime.
- Confidence in Karachi Police fell to 30%.
- 88% say Middle Eastern conflicts affect their operations.
- 87% remain comfortable holding senior meetings in Pakistan.
Addressing these security challenges is essential for Pakistan to enhance its attractiveness as a destination for foreign investment. The government’s response to these concerns will play a pivotal role in shaping the future of business in the country.
