Security Hurts Business Confidence: OICCI

KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) on Tuesday released its Security Survey 2026, cautioning that deterioration in Karachi and continued security challenges in the country’s western regions are weighing on investor confidence and business operations despite improvements in parts of Pakistan.

The annual OICCI Security Survey 2026, conducted in June amongst the leading foreign investors operating across Pakistan, found that the top leadership of 71 per cent of member respondent companies ranked security among their top three business concerns, highlighting that law and order remains a major impediment to investment and economic activity.

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 respondents reporting an increase in street crimes trend in Karachi, up from 45pc last year. The same has been observed in Quetta where the street crimes trends have increased to 37pc compared to 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 concerns during daily commutes also worsened in Karachi (45pc versus 41pc in 2025) and Quetta (83pc versus 79pc).

Commenting on the findings of the survey, Secretary General OICCI M. Abdul Aleem said: “The survey demonstrates the resilience and long-term commitment of foreign investors to Pakistan. However, sustaining investment momentum requires consistent improvements in public safety and law enforcement. Security should be viewed not merely as a law and order issue, but as a critical economic enabler. Reducing street crime, strengthening policing and ensuring a secure operating environment will directly enhance Pakistan’s competitiveness as an investment destination.”

Respondents also reported a decline in their assessment of civilian law enforcement, with positive ratings for Karachi Police falling to 30pc from 38pc last year and Sindh Police to 16pc from 26pc. By contrast, Sindh Rangers and KP Police recorded improved ratings, increasing to 43pc from 34pc and 40pc from 34pc, respectively. Businesses continued to identify street crime, illegal gratification, expatriate security and protests as the principal law and order issues affecting business confidence.

The survey also found that regional geopolitical developments have added to the security burden. Eighty-eight per cent 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.

OICCI urged the government to sustain targeted security interventions, strengthen policing capacity and accelerate institutional reforms to 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.