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Pakistan's worsening security climate raises concerns for foreign investors

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Asia | July 9, 2026 2:57:39 PM IST
Islamabad [Pakistan] July 9 (ANI) Pakistan's worsening security environment, particularly in Karachi and the country's western regions, is continuing to undermine investor confidence and disrupt business operations, according to the latest security survey conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI), as reported by The Express Tribune.

According to The Express Tribune, the annual OICCI Security Survey 2026, carried out in June among major foreign investors operating in Pakistan, found that security has become one of the three biggest concerns for the leadership of 71 per cent of member companies. Respondents said persistent law and order issues remain a significant obstacle to attracting investment and expanding business activity.

The survey highlighted worsening security perceptions in several regions. Around 42 per cent of respondents said the security situation in Karachi had worsened, while an overwhelming 81 per cent in Quetta and 86 per cent across the rest of Balochistan reported a decline in overall security conditions. Businesses also reported growing concerns over employee safety during daily commutes, particularly in Karachi and Quetta, reflecting the broader impact of insecurity on routine operations.

Street crime continued to be the leading concern among businesses. Half of the surveyed companies reported an increase in street crime in Karachi compared to the previous year, while Quetta also witnessed a notable rise in such incidents. Overall, nearly one-third of respondents said the security environment affecting their businesses had worsened compared to last year.

Confidence in law enforcement also declined. Positive assessments of the Karachi Police and Sindh Police dropped significantly from the previous survey, although respondents expressed relatively improved confidence in the Sindh Rangers and the Khyber Pakhtunkhwa Police. Businesses additionally cited illegal demands for payments, concerns over expatriate security, and recurring protests as major operational challenges, as cited by The Express Tribune.

Regional instability has further compounded business risks. 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, followed by reduced commercial activity and employee safety, as reported by The Express Tribune. (ANI)

 
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