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Foreign investors losing confidence in Pakistan due to deteriorating law and order situation


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Multinational companies in Pakistan are worried about the deteriorating law and order situation, especially in the country’s financial hub Karachi.

A recent survey conducted by The Overseas Investors Chamber of Commerce and Industry (OICCI) in Pakistan showed that the law and order situation in the country has worsened over the years.

The report of the survey conducted by the representative body of over 200 multinationals operating in Pakistan suggested that 70 per cent of the CEOs polled reported security among the top three concerns for them versus 60 pc a year ago, the Dawn reported.

The OICCI expressed concerns over the worsening security situation in the country and approached the Interior Minister Rana Sanaullah over the issue

The OICCI conducted its annual ‘Members Security Survey 2022’, in May and June and polled as many as 115 members.

The overall security situation has deteriorated notably in Karachi and Sindh, the survey said.

“This is in contrast to the previous similar security surveys, which showed a constant improvement over the past seven years, especially in Karachi,” the survey noted.

It provides an area-wise account of depleting faith of local companies in the law and order situation and the administration’s ability to tackle it. Karachi which is the nerve centre of commercial activity in Pakistan and is also called the financial capital of the country reveals a disturbing picture,the Dawn reported.

The report said the recent high-profile incident involving Chinese expatriates appears to be one of the reasons for the growing security concern in Karachi.

The survey also revealed a declining trend in businessmen’s confidence with respect to the law and order situation in the country.

“About half of the respondents felt that the security situation had some effect on their operations and associated businesses (suppliers/vendors and consumers) with 56pc of the respondents citing an increase in street crimes being faced by their employees,” it said.

Faultlines in Pakistan’s economic policies have led to challenges for the rest of the social and commercial ecosystem. The perceptible deterioration in law and order across major cities has clearly hit the morale of investors including overseas ones.

Ground-level feedback from various channels points towards a visible setback to industrial activities due to security challenges cropping up across Pakistan.

The widespread militancy and lawlessness across the country has worsened the internal security situation. There is a rise in criminal gangs at the local level. All of this has further jeopardised the development and peaceful existence of Pakistani society.

The chamber urged law enforcement agencies and other government authorities responsible for promoting investment and business activities to strengthen the overall security environment while especially focusing on foreigners’ security and street crimes in the industrial cities of Karachi, Lahore and Faisalabad. 

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