A survey of foreign investors has found that deteriorating security conditions, particularly in Karachi and Balochistan, continue to undermine business confidence and investment in Pakistan. ..reports Asian Lite News Desk
Pakistan’s deteriorating security environment, particularly in Karachi and the country’s western regions, continues to erode investor confidence and disrupt business operations, according to the Overseas Investors Chamber of Commerce and Industry’s (OICCI) annual Security Survey 2026.
Conducted in June among major foreign investors operating in Pakistan, the survey found that security ranks among the top three concerns for the leadership of 71 per cent of OICCI member companies. Respondents said persistent law and order issues remain a major hurdle to attracting investment and expanding business activity, The Express Tribune reported.
The survey pointed to worsening security perceptions across several regions. Around 42 per cent of respondents said the security situation in Karachi had deteriorated over the past year, while 81 per cent in Quetta and 86 per cent in the rest of Balochistan reported a decline in overall security conditions.
Businesses also expressed growing concerns over employee safety during daily commutes, particularly in Karachi and Quetta, highlighting the wider impact of insecurity on routine operations.
Street crime remained the leading concern for companies surveyed. Half of the respondents reported an increase in street crime in Karachi compared with the previous year, while Quetta also recorded a notable rise in such incidents. Overall, nearly one-third of participating companies said the security environment affecting their operations had worsened since last year, according to The Express Tribune.
The survey also indicated declining confidence in law enforcement agencies. Positive assessments of the Karachi Police and Sindh Police fell compared with the previous survey, although respondents reported relatively higher confidence in the Sindh Rangers and the Khyber Pakhtunkhwa Police.
Companies further identified illegal demands for payments, concerns over the security of expatriate employees and recurring protests as significant operational challenges.
Regional instability has added to the pressures facing businesses. Nearly 88 per cent of surveyed companies said tensions in the Middle East had affected their operations, with supply chain disruptions emerging as the biggest concern. Reduced commercial activity and employee safety were also cited as key challenges arising from the regional situation, The Express Tribune reported.
