Security challenges, particularly in Karachi and Pakistan’s western regions, continue to undermine investor confidence and business activity despite improvements in some parts of the country, according to the Overseas Investors Chamber of Commerce and Industry (OICCI) Security Survey 2026 released on Wednesday.
The annual survey, conducted in June among leading foreign investors operating in Pakistan, found that 71% of respondent companies ranked security among their top three business concerns, underscoring that law and order remains a significant obstacle to investment and economic growth.
According to the findings, security perceptions in Karachi worsened slightly from last year, with 42% of respondents reporting a deteriorating security environment compared with 41% in 2025. In Balochistan, concerns remained considerably higher, with 81% of respondents in Quetta and 86% in the rest of the province saying the security situation had deteriorated.
Street crime remained the leading concern for businesses. Half of the respondents in Karachi reported an increase in street crime, up from 45% a year earlier, while the figure for Quetta rose to 37% from 24% in 2025. Meanwhile, 32% of respondents said security conditions affecting their businesses had worsened, compared with 28% last year. Concerns over employees’ personal safety during daily commuting also increased, rising to 45% in Karachi from 41% and to 83% in Quetta from 79%.
Commenting on the survey, OICCI Secretary General M. Abdul Aleem said the findings reflected the resilience and long-term commitment of foreign investors to Pakistan but stressed that sustained investment would depend on continued improvements in public safety and law enforcement. He said security should be regarded not only as a law-and-order issue but also as a key driver of economic growth, adding that reducing street crime, strengthening policing and ensuring a secure business environment would improve Pakistan’s competitiveness as an investment destination.
The survey also indicated declining confidence in civilian law enforcement agencies. Positive ratings for Karachi Police dropped to 30% from 38% last year, while approval of Sindh Police declined to 16% from 26%. In contrast, perceptions of the Sindh Rangers and Khyber Pakhtunkhwa Police improved, with favourable ratings increasing to 43% from 34% and to 40% from 34%, respectively. Respondents continued to identify street crime, illegal gratification, expatriate security and protests as the principal law-and-order issues affecting business confidence.
Regional geopolitical tensions also added to corporate security concerns. The survey found that 88% of respondents said the conflict in the Middle East had affected their organisations’ security environment, citing supply chain and logistics disruptions (83%), reduced business activity (69%) and employee safety (38%) as the main areas of concern.
Despite the security challenges, foreign investors largely maintained their commitment to Pakistan. The survey showed that 87% of OICCI member companies remained confident about holding board and management meetings within the country, reflecting continued faith in Pakistan’s long-term economic prospects.
OICCI called on the government to continue targeted security measures, strengthen policing capabilities and accelerate institutional reforms to provide businesses with a more predictable and secure operating environment, saying enhanced security would be essential for attracting fresh investment and supporting sustainable economic growth.