71% foreign investors rank security among top business concerns in Pakistan

Deteriorating security in Karachi and continued law and order challenges in Pakistan’s western regions are affecting investor confidence and business operations, according to the Overseas Investors Chamber of Commerce and Industry’s Security Survey 2026.

The annual survey was conducted in June among leading foreign investors operating in Pakistan. It found that the top leadership of 71% of OICCI member companies ranked security among their top three business concerns.

Security perceptions worsened in Karachi, where 42% of respondents reported a deteriorating environment, compared with 41% in 2025. The situation was more severe in Balochistan, with 81% of respondents in Quetta and 86% in the rest of the province reporting a decline in security conditions.

Street crime remained the biggest concern. In Karachi, 50% of respondents reported an increase in street crime, up from 45% last year. In Quetta, the figure rose to 37% from 24%.

Overall, 32% of respondents said security conditions affecting their businesses had deteriorated, compared with 28% in the previous survey.

Concerns over employees’ personal safety during daily commutes also increased, rising to 45% in Karachi from 41% and to 83% in Quetta from 79%.

The survey showed a decline in positive ratings for Karachi Police, which fell to 30% from 38% last year, while Sindh Police dropped to 16% from 26%. Sindh Rangers improved to 43% from 34%, while Khyber Pakhtunkhwa Police rose to 40% from 34%.

Businesses identified street crime, illegal gratification, expatriate security and protests as their main security concerns.

The survey also found that 88% of respondents said the Middle East conflict had affected their organisations. The main concerns were supply chain security, cited by 83%, reduced business activity by 69%, and employee safety by 38%.

OICCI Secretary General M Abdul Aleem said the findings reflected the resilience and commitment of foreign investors to Pakistan, but added that sustaining investment momentum required consistent improvements in public safety. He said security should be treated as a critical economic enabler.

Despite the concerns, 87% of OICCI members said they remained confident about holding board meetings in Pakistan.

OICCI urged the government to maintain targeted security interventions, strengthen policing and accelerate institutional reforms to provide businesses with a more predictable and secure operating environment.