Security challenges continue to remain a major barrier for businesses operating in Pakistan, with 71 percent of foreign investors identifying security as one of their top three concerns, according to the Overseas Investors Chamber of Commerce and Industry (OICCI) Security Survey 2026.
The survey, conducted among leading foreign companies operating in Pakistan during June 2026, showed that businesses remain particularly concerned about worsening conditions in Karachi and Balochistan, despite improvements in some areas.
According to the findings, 42 percent of respondents reported that Karachi’s security situation had deteriorated, while concerns were significantly higher in Balochistan, with 81 percent of investors in Quetta and 86 percent across the rest of the province reporting worsening conditions.
Street crime emerged as the biggest security concern for businesses. Around 50 percent of respondents said street crime in Karachi had increased, compared with 45 percent last year. In Quetta, 37 percent reported worsening street crime, up from 24 percent in 2025.
Investor confidence in some law enforcement institutions also declined. Positive perceptions of the Karachi Police dropped to 30 percent from 38 percent, while the Sindh Police rating fell to 16 percent from 26 percent. However, confidence in the Sindh Rangers and Khyber Pakhtunkhwa Police improved compared with the previous survey.
The survey also highlighted the impact of international tensions, with 88 percent of respondents saying the Middle East conflict had affected their businesses. Companies cited supply chain disruptions, logistics security issues, lower business activity, and employee safety as key concerns.
Despite security challenges, 87 percent of OICCI member companies said they remain comfortable conducting board and senior management meetings in Pakistan, indicating continued long-term interest in the country’s market potential.
OICCI called for stronger policing, improved public safety measures, and faster institutional reforms, stressing that a secure business environment is critical for attracting foreign investment and supporting sustainable economic growth.
