Law and order situation in Karachi and security challenges in Pakistan’s western regions are undermining investor confidence and disrupting business operations, reveals the Security Survey 2026.
Conducted in June 2026 among leading foreign investors operating in Pakistan, the Overseas Investors Chamber of Commerce and Industry’s survey found that 71% of respondent companies ranked security among their top three business concerns. The findings underscore that law and order remain one of the biggest obstacles to investment and economic activity.
Perceptions of security in Karachi continued to decline. Around 42% of respondents said the city’s security situation had worsened, compared with 41% in the previous year’s survey. The outlook remained particularly bleak in Balochistan, where 81% of respondents in Quetta and 86% in other parts of the province reported a deteriorating security environment.
Street crime remained the leading concern for businesses. In Karachi, 50% of respondents observed an increase in street crime, up from 45% in 2025. A similar trend was reported in Quetta, where 37% noted rising street crime compared with 24% a year earlier.
The survey also showed growing concern over business operations and employee safety. About 32% of respondents said security conditions affecting their businesses had deteriorated, compared with 28% last year. Concerns about employees’ personal safety during daily commutes also increased, with 45% of respondents in Karachi expressing concern, up from 41% in 2025, while the figure in Quetta rose to 83% from 79%.
OICCI Secretary General M. Abdul Aleem said the results 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 as a key driver of economic growth, adding that reducing street crime, strengthening policing and ensuring a safe business environment would enhance Pakistan’s appeal as an investment destination.
Businesses also expressed declining confidence in civilian law enforcement agencies. Positive ratings for Karachi Police dropped to 30% from 38% last year, while Sindh Police saw approval fall to 16% from 26%. In contrast, the Sindh Rangers and Khyber Pakhtunkhwa Police received improved ratings, rising to 43% from 34% and 40% from 34%, respectively.
Respondents identified street crime, corruption in the form of illegal gratification, expatriate security and protests as the key law and order issues affecting business confidence.
The survey further highlighted the impact of regional geopolitical tensions. Around 88% of respondents said the conflict in the Middle East had affected their organisations’ security environment. The most significant concerns included disruptions to supply chains and logistics (83%), reduced business activity (69%) and employee safety (38%).
Despite these challenges, foreign investors largely maintained their commitment to Pakistan. The survey found that 87% of OICCI member companies remained comfortable holding board and management meetings within the country, reflecting continued confidence in Pakistan’s long-term economic prospects.
OICCI called on the government to continue targeted security measures, enhance policing capabilities and accelerate institutional reforms to create a more secure and predictable business environment. The chamber said stronger security would be vital for attracting fresh investment and supporting sustainable economic growth.
