7 in 10 Foreign Investors Say Security Is Main Issue in Pakistan

Security remains one of the biggest obstacles to doing business in Pakistan, with 71 percent of foreign investors ranking it among their top three business concerns, according to the Overseas Investors Chamber of Commerce and Industry (OICCI) Security Survey 2026.

The findings come despite improvements in some parts of the country, as businesses continue to cite deteriorating conditions in Karachi and persistent security challenges in Balochistan.

The survey, conducted in June among leading foreign investors operating in Pakistan, found that 42 percent of respondents said the security environment in Karachi had worsened, while 81 percent in Quetta and 86 percent in the rest of Balochistan reported deteriorating conditions.

Street crime remained the biggest concern for businesses. Half of the respondents reported an increase in street crime in Karachi, up from 45 percent last year, while 37 percent reported worsening street crime in Quetta, compared with 24 percent in 2025.

Businesses also expressed declining confidence in civilian law enforcement. Positive ratings for Karachi Police fell to 30 percent from 38 percent last year, while Sindh Police’s rating dropped to 16 percent from 26 percent. In contrast, confidence in the Sindh Rangers and Khyber Pakhtunkhwa Police improved.

The survey also highlighted the impact of regional geopolitical tensions. Around 88 percent of respondents said the conflict in the Middle East had affected their organizations, with supply chain disruptions, logistics security, reduced business activity, and employee safety emerging as the biggest concerns.

Despite these challenges, 87 percent of OICCI member companies said they remain comfortable holding board and senior management meetings in Pakistan, reflecting continued long-term confidence in the country’s economic potential.

OICCI urged the government to strengthen policing, improve public safety, and accelerate institutional reforms, saying that a more secure operating environment is essential to attracting new investment and supporting sustainable economic growth.