ECURITY concerns worldwide, and in Pakistan, are not likely to dissipate any time soon. Indeed, one must admit that the world has changed and adapt accordingly by learning to manage and mitigate risks in a way that does not compromise the country`s development and economic empowerment.

No doubt terrorism poses a threat to businesses in many countries, including Pakistan. Ironically, both actual violence and biased international media coverage have played a key role in scaring away investors and reducing foreign direct investment. However a fair and accurate representation of the country would reveal that Pakistan is a largely peaceful country where normal life continues with individuals involved in their routine business.

With a large English-using population and a youth bulge, Pakistan is an attractive emerging market for multinationals.

The business environment has also been conducive for multinational enterprises since its birth in 1947. Indeed, since the country`s inception, it has attracted new companies/investments.

Despite the country`s attractive market, for foreign companies to wait for a perfect security landscape in order toinvest, seems idealistic. Indeed, innovations and new investment models are what is actually required to balance out the playing field.

To this end, the onus lies in a large part on the government to effectively address both genuine and perceived fears of prospective investors. The Board of Investment (BOI), operating from the Prime Minister`s Office, should develop a mechanism for close and continuous coordination with the Ministry of Interior and the Ministry of Foreign Affairs to guarantee security arrangements for visiting businessmen and traders and to ensure fast track visa processing for them. Such extra concessions are crucial to compensate for the perceived risks of investing in a country often portrayed as a `front-line` state in the war against terrorism.

Those foreign companies that have successfully managed to mitigate these risks and operate in Pakistan, often for decades, also have a key role to play.

Through their example and with their experience, they can participate in forming a forum -with the close cooperation of various government agencies that develops strategies to address and manage the impact of the security situation on businesses.

This forum can also develop aresearch centre to keep MNCs informed about the complexities of the security situation and emerging threats, and so help develop pre-emptive measures to manage the direct and indirect impact of the security situation on their businesses in a proactive and effective manner.

When formulating anti-terror laws, regulations and policies, the government too should keep the MNCs interests in view, to ensure that efforts to ameliorate security conditions do not have `unintended consequences of hindering efficient business operations`, as was the case due to some provisions of the USA Patriot Act which dissuaded international travellers from visiting the US. It resulted in increased costs and decreased efficiency in international shipping.

Additionally, a Corporate Security Division (CSD), comprising of small but effective units of trained personnel can also play a key role in ensuring dedicated security services to MNCs and businesses. Indeed, this tangible display of seriousness in protecting foreign investment will bolster a sense of security among prospective investors. The Security Division for the CPEC is a good example of such an arrangement.

Like tax-free industrial zones, anotherpossible option to mitigate security risks for foreign investors would be the establishment of exclusive risk-free industrial zones, with self-contained residential, markets, banks and recreational facilities within walled and gated areas. CSD units and private security can be deployed for its security.

In addition to the government and the private security sector must also upgrade itself to offer special services to businesses, MNCs and foreign visitors.

There is a visible dearth of properly trained men, bullet and bomb proof vehicles and sophisticated equipment available with private security providers. To ensure their effectiveness, these companies must have highly trained personnel and modern gadgetry to enable them to secure their clients.

Arguably, these steps, if adopted properly, will demonstrate the seriousness of the government and the MNCs in adapting to the challenges of the security situation, resulting in a safer environment for foreign investors and businesses a win-win situation for everyone.

The writer is a doctoral candidate at School of Business and Management, King`s College, London.