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Better security to build investor trust

Better security to build investor trust

Express Tribune25-07-2025
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A measurable improvement has been observed in the overall security environment in Pakistan, particularly in key business hubs of Karachi, Lahore and Islamabad, according to a survey released on Thursday.
The Overseas Investors Chamber of Commerce and Industry (OICCI) released results of its Annual Security Survey 2025, which reflects feedback from leading foreign investors operating across Pakistan.
According to the survey that covered the period from June 2024 to May 2025, over 70% of respondents reported a notable decline in serious crimes in Karachi, Lahore and across Punjab, with street crimes also reducing significantly in Karachi, Lahore and Islamabad.
Additionally, employee perceptions of personal safety during daily commutes improved for two-thirds of respondents.
While street crimes declined moderately in Quetta and Peshawar, these cities continue to be perceived as least secure for personal safety. Most notably, there was deterioration in serious crimes in Balochistan compared to the previous year, impacting the positive trend seen in other provinces. "This divergence reinforces concerns that while perception has improved in major cities, the fragile security situation in regions like Balochistan continues to impact Pakistan's global image and undermines long-term investor confidence," the OICCI said.
Despite visible progress in key urban centres, security remains one of the top three concerns for chief executives. Commenting on the survey findings, OICCI Secretary General M Abdul Aleem stated: "The OICCI Security Survey 2025 reflects a cautiously optimistic outlook, with clear gains in major cities like Karachi and Lahore, a positive signal for investor confidence. However, sustaining and expanding these improvements across all regions is essential to maintain the momentum and reassure both local and foreign stakeholders about Pakistan's overall security trajectory."
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Security in Pakistan's major urban centres – Karachi, Lahore, and Islamabad – has shown measurable improvement over the past year, particularly in terms of serious and street crimes. Data collected from some of the country's largest foreign-invested companies, as reflected in the OICCI Security Survey 2025, points to growing confidence in commuting safety, reduced criminal activity in business districts, and fewer incidents that disrupt day-to-day commercial operations. In Karachi, long viewed as a litmus test for law and order, a significant majority of business leaders reported improvements in both serious and petty crimes. Lahore and Islamabad reflected similar trends, with increased satisfaction over the visible law enforcement presence and administrative control. These developments have translated into a more predictable business environment in urban Pakistan, critical for sustaining investor sentiment and operational continuity. However, the optimism begins to wane when moving away from these urban pockets. The situation in Balochistan stands in sharp contrast to the progress seen elsewhere. Serious crimes in the province have increased over the past year, reversing previous gains and cementing its position as a high-risk region in the eyes of the investor community. Peshawar and Quetta, while showing marginal improvements in street crime, continue to be ranked among the least secure cities in the country. Such regional disparities in security don't just remain a domestic challenge; they ripple across Pakistan's global perception. Foreign investors view national security as a whole, not as a fragmented reality. Fragility in one province, particularly one as resource-rich and geopolitically significant as Balochistan, undermines the confidence generated by improvements in other regions. The deterrent effect is real and measurable, not just in terms of perception but in the form of slowed investment decisions, tighter compliance checks, and internal risk reassessments by multinational corporations. One need not look far for examples of why such perceptions persist. A recent case of honour killing in Balochistan's Degari area, where a young couple was murdered by order of a tribal council, has reignited debate around lawlessness and parallel justice systems. Beyond the tragedy itself, the incident has become a glaring symbol of institutional weakness and lack of governance. For foreign investors, it reinforces the risks associated with operating in or near regions where state writ is inconsistently applied. The reputational and operational implications of such events are not abstract; they directly impact boardroom decisions, investment pipelines, and long-term project viability. At the executive level, these concerns remain top of mind. According to the OICCI Security Survey 2025, security continues to rank among the top three concerns for CEOs of foreign companies operating in Pakistan. Even as confidence grows in cities like Karachi and Lahore, decision-makers remain cautious. Their concern is less about isolated crime and more about systemic unpredictability: whether the rule of law is applied evenly, whether security forces are responsive, and whether the business environment can absorb shocks without sliding into disruption. Interestingly, the pattern of business travel reflects this evolving sentiment. Overseas visits to Pakistan remained consistent with the previous year, but there was a noticeable decline in meetings conducted abroad. This may suggest a growing willingness among executives to engage on-ground, reflective of improved security perceptions domestically. However, when travel was postponed, it was typically linked to geopolitical flare-ups, particularly India–Pakistan tensions, rather than internal law and order concerns. That said, confidence built in one year can easily erode if localised insecurity is allowed to persist or worsen. The broader lesson is clear: progress in Karachi or Lahore cannot compensate for deterioration in Balochistan or neglect in Peshawar. For Pakistan to project itself as a credible and consistent investment destination, improvements in law and order must be national in scope. Urban stabilisation is a necessary start, but not sufficient. Without sustained security improvements in underdeveloped and conflict-affected regions, the benefits seen in urban centres are unlikely to translate into broader economic stability or investor trust. The future of foreign direct investment in Pakistan will depend less on isolated successes and more on the country's ability to present a coherent, nationwide picture of stability, law enforcement, and accountability. As the data from this year's OICCI Security Survey makes clear, the gap between progress and perception is narrowing in the cities. But until it closes in the peripheries, investor hesitation will remain an enduring reality. Copyright Business Recorder, 2025

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Overall security environment: OICCI survey reveals measurable improvement
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KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) has released the results of its Annual Security Survey 2025, reflecting feedback from leading foreign investors operating across Pakistan. Covering the period from June 2024 to May 2025, the survey revealed a measurable improvement in the overall security environment, particularly in key business hubs of Karachi, Lahore, and Islamabad. According to the survey, over 70 percent of respondents reported a notable decline in serious crimes in Karachi, Lahore, and across Punjab, with street crimes also reducing significantly in Karachi, Lahore, and Islamabad. Additionally, employee perceptions of personal safety during daily commutes improved for two-thirds of the respondents, especially in the aforementioned cities. However, the findings also highlight that security challenges persist in certain sensitive regions. While street crimes moderately declined in Quetta and Peshawar, these cities continue to be perceived as the least secure for personal safety. OICCI shows concern over climate change impacts on Pakistan Most notably, Balochistan witnessed deterioration in serious crimes compared to the previous year, impacting the positive trend seen in other provinces. This divergence reinforces concerns that while perception has improved in major cities, the fragile security situation in regions like Balochistan continues to impact Pakistan's global image and undermines long-term investor confidence. Importantly, despite visible progress in key urban centers, security remains one of the top three concerns for Chief Executives, signaling that continued and inclusive improvement is essential for sustaining business confidence. Commenting on the findings, Secretary General OICCI M Abdul Aleem stated: 'The OICCI Security Survey 2025 reflects a cautiously optimistic outlook, with clear gains in major cities like Karachi and Lahore, a positive signal for investor confidence. However, sustaining and expanding these improvements across all regions is essential to maintain momentum and reassure both local and foreign stakeholders about Pakistan's overall security trajectory.' While the number of overseas business visits to Pakistan remained similar to 2024, the decline in meetings held abroad indicates growing confidence in Pakistan's internal security environment. The few instances of postponed travel were primarily due to geopolitical tensions, particularly India-Pakistan escalations, rather than domestic security concerns. The OICCI reiterates its commitment to partnering with government and law enforcement institutions to promote a more secure and enabling business climate throughout Pakistan. Copyright Business Recorder, 2025

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