Key Takeaways
- 71% of foreign investors rank security as a major business concern.
- Karachi and Balochistan continue to face deteriorating security conditions.
- 88% of respondents say regional geopolitical tensions impact their operations.
A recent survey by the Overseas Investors Chamber of Commerce and Industry (OICCI) has revealed that security remains a significant obstacle for foreign investors in Pakistan. According to the findings, 71 percent of leading foreign investors operating in the country consider security as one of their top three business concerns.
The survey, conducted among prominent foreign investors in June 2026, highlights persistent challenges in Karachi and Balochistan. In Karachi, 42 percent of respondents reported a worsening security environment, while 81 percent in Quetta and 86 percent in the rest of Balochistan cited deteriorating conditions.
Street crime is identified as the primary concern for businesses operating in these regions. Half of the respondents noted an increase in street crime in Karachi, up from 45 percent last year, and 37 percent reported worsening street crime in Quetta, compared to 24 percent in 2025.
Businesses also expressed declining confidence in civilian law enforcement agencies. Positive ratings for the Karachi Police fell to 30 percent from 38 percent last year, while Sindh Police’s rating dropped to 16 percent from 26 percent. However, there were some positive developments, with increased confidence in the Sindh Rangers and Khyber Pakhtunkhwa Police.
Regional geopolitical tensions have also had a significant impact on foreign investors' operations. Approximately 88 percent of respondents said that the conflict in the Middle East has affected their organizations, leading to supply chain disruptions, logistics security concerns, reduced business activity, and employee safety issues.
Despite these challenges, 87 percent of OICCI member companies remain confident about holding board and senior management meetings in Pakistan. This reflects a continued long-term commitment to the country's economic potential. The OICCI urged the government to strengthen policing, improve public safety, and accelerate institutional reforms to create a more secure operating environment.
According to the survey, a better security situation is essential for attracting new investment and supporting sustainable economic growth in Pakistan. The findings underscore the need for concerted efforts by the government and relevant authorities to address these critical issues.
