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
The writer is Chief Executive/Secretary-General OICCI