Survey shows 71% of foreign firms rank law and order among top three business worries
ISLAMABAD:
Deteriorating security in Karachi and persistent challenges in Pakistan’s western regions are weighing on investor confidence and business operations, according to the Overseas Investors Chamber of Commerce and Industry’s (OICCI) Security Survey 2026 released on Tuesday.
The annual survey, conducted in June among leading foreign investors operating across the country, found that the top leadership of 71 % of member companies ranked security among their top three business concerns, highlighting that law and order remains a major impediment to investment. Security perceptions in Karachi deteriorated, with 42% of respondents reporting a worsening environment, up from 41% in 2025. In Quetta, 81% reported deteriorating security, while 86% in the rest of Balochistan said the same.
Street crimes remained the foremost concern, with 50% of respondents reporting an increase in Karachi, up from 45% last year. In Quetta, street crime rose to 37% from 24%. Overall, 32% said security conditions affecting their businesses had deteriorated, up from 28%. Concerns over employees’ personal security during daily commutes also worsened in Karachi (45% versus 41%) and Quetta (83% versus 79%).
Positive ratings for Karachi Police fell to 30% from 38% last year and Sindh Police to 16% from 26%. By contrast, Sindh Rangers and K-P Police improved to 43% from 34% and 40% from 34%, respectively. Businesses identified street crime, illegal gratification, expatriate security and protests as principal concerns.
Eighty-eight per cent of respondents said the Middle East conflict affected their organisations, with supply chain security (83%), reduced business activity (69%) and employee safety (38%) emerging as top concerns. OICCI Secretary General M Abdul Aleem said the survey demonstrates foreign investors’ resilience and commitment to Pakistan. He said sustaining investment momentum requires consistent improvements in public safety, adding that security should be viewed as a critical economic enabler.
Despite challenges, 87% of OICCI members remain confident of holding board meetings in Pakistan. OICCI urged the government to sustain targeted security interventions, strengthen policing and accelerate institutional reformsto provide businesses with a more predictable and secure operating environment, noting that improved security is essential to attracting new investment and supporting sustainable economic growth.