KARACHI: Rising security concerns stemming from geopolitical uncertainty and ongoing challenges in the western regions are undermining foreign investor confidence and business activity.

The Security Survey 2026, conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI) in June, found that 71 per cent of the top leadership of respondent foreign companies operating across Pakistan ranked security among their three main business concerns. This highlights that ongoing law and order challenges continue to pose significant barriers to investment and economic activity.

The survey also found that regional geopolitical developments have added to the security burden. Around 88pc of respondents said the Middle East conflict had affected their organisations’ security environment, with supply chain and logistics security (83pc), reduced business activity (69pc) and employee safety (38pc) emerging as the most significant concerns.

Despite these challenges, foreign investors have largely maintained their engagement with Pakistan, with 87pc of OICCI member companies remaining confident of holding board and management meetings within the country, signalling confidence in Pakistan’s long-term economic potential.

The survey shows that security perceptions in Karachi deteriorated compared to last year, with the proportion of respondents reporting a worsening security environment rising to 42pc from 41pc in 2025.

Meanwhile, 81pc of respondents in Quetta and 86pc in the rest of Balochistan continued to report a deteriorating security environment. Street crimes remained the foremost concern for businesses, with 50pc of respondents reporting an increase in the street crime trend in Karachi, up from 45pc last year. The same has been observed in Quetta, where the street crime trend has increased to 37pc, up from 24pc in 2025.

Meanwhile, 32pc of respondents said security conditions affecting their own businesses had deteriorated, up from 28pc last year, while concerns over employees’ personal security during daily commutes also worsened in Karachi (45pc versus 41pc in 2025) and Quetta (83pc versus 79pc).

Published in Dawn, July 9th, 2026