FLASHNEWS:

Security Concerns Persist for Investors in Pakistan, OICCI Survey Reveals

KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) has released its Security Survey 2026, highlighting that ongoing security challenges in Karachi and western regions of Pakistan continue to undermine investor confidence and business operations, despite some improvements in certain areas of the country.

According to the Overseas Investors Chamber of Commerce and Industry, the survey conducted in June with leading foreign investors operating across Pakistan found that the leadership of 71 percent of member respondent companies identified security as one of their top three business concerns. This underscores the persistent role of law and order issues as a significant barrier to investment and economic activity.

Security perceptions in Karachi have worsened, with 42 percent of respondents reporting a deteriorating security environment, up from 41 percent in 2025. In Quetta and the rest of Balochistan, 81 percent and 86 percent of respondents, respectively, noted a declining security situation. Street crimes remain a primary concern, with 50 percent of respondents in Karachi and 37 percent in Quetta reporting an increase in such incidents. Additionally, 32 percent of businesses reported a decline in security conditions affecting their operations, and concerns over employees' personal security during daily commutes have increased in both cities.

M. Abdul Aleem, Secretary General of OICCI, commented on the survey findings, emphasizing that while foreign investors remain committed to Pakistan, sustaining investment momentum will require consistent enhancements in public safety and law enforcement. He stressed that security should be viewed as a critical economic enabler, with efforts needed to reduce street crime and strengthen policing to enhance Pakistan's competitiveness as an investment destination.

The survey also highlighted a decline in the assessment of civilian law enforcement, with positive ratings for Karachi Police and Sindh Police dropping. In contrast, Sindh Rangers and KP Police showed improved ratings. Key law and order issues affecting business confidence include street crime, illegal gratification, expatriate security, and protests.

Regional geopolitical developments have compounded the security burden, with 88 percent of respondents indicating that the Middle East conflict has affected their organizations' security environment. Concerns include supply chain and logistics security, reduced business activity, and employee safety.

Despite these challenges, foreign investors have largely maintained their engagement with Pakistan, with a significant majority of OICCI member companies confident in holding board and management meetings within the country, reflecting confidence in Pakistan's long-term economic potential.

OICCI has urged the government to focus on targeted security interventions, enhance policing capacity, and accelerate institutional reforms to provide a more predictable and secure operating environment for businesses, noting that improved security is vital for attracting new investment and supporting sustainable economic growth.