India, July 9 -- Foreign investment in Pakistan is shrinking as the worsening security environment, particularly in Karachi and the country's western regions, continues to undermine investor confidence and disrupt business operations.

According to the latest security survey conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI), security has become one of the three biggest concerns among foreign investors in Pakistan, with the leadership of 71 per cent of member companies citing it as a concern, The Express Tribune reported.

The annual OICCI Security Survey 2026, conducted in June among major foreign investors operating in Pakistan, found that respondents said persistent law and order issues remain a significant ob...