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

Security remains one of the biggest obstacles to foreign investment in Pakistan, with 71% of overseas investors ranking it among their top three business concerns, according to the Overseas Investors Chamber of Commerce and Industry's Security Survey 2026 released Tuesday.

The annual survey, conducted in June among leading foreign investors operating in Pakistan, found that worsening security perceptions in Karachi and persistent challenges in the country's western regions continue to undermine business confidence despite improvements in some parts of the country.

According to the survey, 42% of respondents said the security environment in Karachi had deteriorated, compared with 41% in 2025. Security concerns remained significantly higher in Balochistan, where 81% of respondents in Quetta and 86% in the rest of the province reported worsening conditions.

Street crime remained the leading concern for businesses. Half of the respondents said street crime had increased in Karachi, up from 45% last year, while 37% reported an increase in Quetta, compared with 24% in 2025.

The survey also found that 32% of respondents said security conditions affecting their own businesses had worsened, up from 28% last year. Concerns about employees' personal safety during daily commutes also increased, with 45% of respondents in Karachi expressing concern, compared with 41% in 2025. In Quetta, the figure rose to 83% from 79%.

"The survey demonstrates the resilience and long-term commitment of foreign investors to Pakistan," OICCI Secretary General M. Abdul Aleem said.

"However, sustaining investment momentum requires consistent improvements in public safety and law enforcement. Security should be viewed not merely as a law-and-order issue but as a critical economic enabler. Reducing street crime, strengthening policing and ensuring a secure operating environment will directly enhance Pakistan's competitiveness as an investment destination," he said.

Businesses also reported lower satisfaction with civilian law enforcement. Positive ratings for Karachi Police fell to 30% from 38% a year earlier, while Sindh Police's rating declined to 16% from 26%. In contrast, positive assessments of the Sindh Rangers and Khyber Pakhtunkhwa Police improved to 43% from 34% and 40% from 34%, respectively.

Respondents continued to identify street crime, illegal gratification, expatriate security and protests as the main law-and-order issues affecting business confidence.

The survey found that regional geopolitical tensions have further increased security risks. About 88% of respondents said the conflict in the Middle East had affected their organizations' security environment. Supply chain and logistics security was cited by 83% of respondents, followed by reduced business activity at 69% and employee safety at 38%.

Despite these challenges, foreign investors have largely maintained their commitment to Pakistan. About 87% of OICCI member companies said they remained confident about holding board and management meetings in the country, reflecting continued confidence in Pakistan's long-term economic potential.

The OICCI urged the government to sustain targeted security measures, strengthen policing capacity and accelerate institutional reforms to provide businesses with a more predictable and secure operating environment, saying improved security is essential for attracting investment and supporting sustainable economic growth.