Putting on a brave face while hoping against hope, corporate Pakistan still expresses confidence that the country’s leadership can manage the security challenges at home and on the borders, ideally without resorting to force.
Some executives point to policy lapses; others avoid attributing blame for how Pakistan has been steered into a perilous corner. But on one point there is unanimity: fear numbs entrepreneurial instinct and drives foreign partners away.
The Pakistan Stock Exchange reacted sharply to last Monday’s twin terror attacks, one at the cadet college in Wana and other in the heart of heavily-guarded Islamabad. The KSE 100 index lost 3,700 points the following day. Yet analysts believe the actual damage lies beneath the numbers: the psychological toll on business sentiments is far deeper and more enduring than the capital market’s immediate drop reflects.
Background research for this story revealed deep anxiety across business circles. Many fear the Islamabad attack could mark the beginning of yet another cycle of deadly urban strikes at a time when both eastern and the western borders are already volatile. The private sector remains largely unconvinced by the official upbeat economic narrative.
Even if you treat reports of business families moving capital abroad as rumours, the investment data speaks for itself; investors are reluctant.
‘There is now a clear realisation that without political stability and a secure environment, it is impossible to build trust or deliver the economic reforms needed to attract international investors’
Pakistan’s investment to GDP ratio, around 13 per cent, is the lowest among regional peers. Bangladesh and Sri Lanka maintain rates around 20–30pc, while the arch-rival India recorded over 30pc in FY24. The contrast underscores a widening confidence gap that no official messaging can mask.
“The situation remains fragile and unpredictable, with improvements likely to be gradual and contingent on the leadership’s ability to execute its strategic actions,” a business leader said off the record.
Self-professed ‘incorrigible optimist’ Aizaz Sheikh, Chairman of Kohat Cement and former president of the All Pakistan Cement Manufacturers Association, refused to give in to despair. “Instability has been part of our lives for decades, making us almost immune to bad news,” he said, “In the end, we have no option but to keep hoping for the better.”
“The country’s leadership understands the economic cost of terrorism and the dangers of conflict with neighbours. I trust they will prioritise peace at home and stability on our borders to create the conducive investment environment necessary for growth, and to deliver on their economic promises,” remarked another executive anonymously.
M Abdul Aleem, Secretary General of the Overseas Investors’ Chamber of Commerce and Industry (OICCI), emphasised that stronger coordination among law-enforcement and security agencies, supported by better intelligence sharing, and consistent rule enforcement, could significantly ease the situation. Sustained government engagement with the business community, he added, is equally essential.
“Challenges persist, but we remain cautiously optimistic that security conditions will gradually improve as the government prioritises stability, strengthens institutions and builds on Pakistan’s inherent resilience,” Mr Aleem said.
Explaining OICCI’s approach, he noted that members mitigate risks through global-standard security frameworks involving close coordination with local authorities, investment in secure infrastructure, strict internal safety protocols, and continuous engagement with law enforcement bodies and policymakers to ensure that the private sector’s concerns are addressed proactively.
“Business operates on calculated risk; markets reward or punish decisions through profit and loss,” argued Haroon Farooki, former president of the Karachi Chamber. “But for decades in Pakistan, the private sector has carried the additional weight of public policy failures and governance lapses,” he stated.
“When security challenges intensify and the operating environment tightens, businesses suffer for reasons far beyond their control. Many feel trapped — responsible for sustaining operations and jobs, yet powerless to influence the forces disrupting them.”
He added, “It is painful to watch national potential wasted and hard-earned gains evaporate because of overconfident, self-righteous actors in power corridors who pursue their objectives regardless of consequences, inflicting collateral damage on businesses and citizens alike.”
Dr Sheikh Kaisar Waheed, former chairman of the Pakistan Pharmaceutical Manufacturers Association and Managing Director of Medisure Laboratories, does not expect volatility to subside soon, attributing security challenges to institutional weaknesses, political divisions and cross-border militancy.
Two actions, he believes, could ease the situation: strengthening regional diplomacy, improving border management and adoption of an integrated security approach. He advised firms to enhance cybersecurity, enforce strict digital safeguards and strengthen overall risk-management systems to operate safely in a high-threat environment.
Chaudhry Mohammad Saeed, former president of the Federation of Pakistan Chamber of Commerce and Industry, struck a positive note. “I am confident the situation will improve. There is now a clear realisation within both the civilian and security establishments that without political stability and a secure environment, it is impossible to build trust or deliver the economic reforms needed to attract international investors,” he said. “To move forward, we may even need to initiate dialogue, including with India, whether directly or through a third party.”
Published in Brackly News, The Business and Finance Weekly, November 17th, 2025
Discover more from Brackly News
Subscribe to get the latest posts sent to your email.
