Investors boost Pakistan security firms

By Karishma Vaswani Business correspondent, BBC World, Karachi, Pakistan

Security guards feel the need to improve skills at the shooting range

It's downtime in the offices of Pakistan's largest security firm, Security 2000.

But the guards here aren't using the time off to relax, take a nap, or catch up on some reading.

Instead, they're at the shooting range, firing a few rounds, to hit their target every single time.

Practice makes perfect, and for these guards perfection is essential.

That's because they provide protection to some of the most prominent foreign businesses in Pakistan.

According to the firm's boss, Brigadier Rashid Malik, Security 2000 has deployed guards to CNN, Telenor and even the BBC.

Across the board

Business has boomed for him in the last few years.

The private security business... in Pakistan has grown dramatically Brigadier Rashid Malik, Security 2000

"My business has grown two fold in the last two years," he says.

A retired army general, Brigadier Malik started his security firm back in 1998, thinking at that time that there would be a demand for more executive protection in Pakistan.

His staff has now grown to a 5,000-strong team - and he says that most days he has to turn requests for his services down.

"I provide security to most of the multi-national firms coming in to Pakistan," he says.

"But there's so much demand for our services, that at times I unfortunately don't have the capacity to be able to help everyone.

"Today, I've had to turn down a request from an overseas firm. That should show you just how much business we're getting.

"But it's not just my firm. The private security business on the whole in Pakistan has grown dramatically over the last few years."

Continued expansion

Foreign firms are now increasingly concerned about threats to their businesses on the streets of Pakistan.

The risks are manageable if you take the right measures Tore Johnsen, chief executive, Telenor Pakistan

There have been concerns about how effective the new government has been in maintaining law and order in the country.

The security situation is worrying the global sporting community as well, as Pakistan is set to host the Cricket Champions Trophy this year.

Security experts say it needs to improve measures to protect the teams.

That's not surprising.

In the last few years, Pakistan has seen a spate of suicide bombings and protests.

Although none of them have attacked foreign businesses directly, in 2006 there were protests against Danish interests in the country, over the publications of cartoons that Muslims in the country found offensive.

Norway's mobile phone firm, Telenor, the second largest telecoms firm in Pakistan, saw two of its stores burned down during the protests - despite the fact that it's not from Denmark.

But that hasn't stopped it from expanding in this market.

Telenor opened its 23rd service centre in Karachi last week and has plans to open nine more around the country this year.

"Pakistan seen from abroad is far worse than the Pakistan I live in," says Tore Johnsen, chief executive of the Pakistan division, who has lived here since 2004 when Telenor began its operations here.

"The perception of Pakistan is so far removed from the reality of being here. I'm not saying there are no risks at all, but the risks are manageable if you take the right measures."

Peace of mind

Managing the risks to get big rewards is something chemicals firm ICI, one of the oldest foreign investors in Pakistan, is used to.

We need to be sure they can fix the security problems Asif Saad, chief operating officer, ICI Pakistan

ICI has pumped in $400m (£200m) to build a chemicals plant on the outskirts of Karachi.

To date it's still one of the largest foreign investment projects Pakistan has seen in the manufacturing sector.

It plans to expand in the future, but says it needs to see more action from this new government to do that.

"As a foreign investor, particularly if you're bringing in money from overseas and investing in manufacturing assets here, you want to be sure that your investment is safe," says Asif Saad, the chief operating officer of ICI in Pakistan.

"We need to be convinced that the new administration is focussed on that, that the leaders understand that this is an issue for us - and we need to be sure they can fix the security problems in Pakistan.

"That will bring us peace of mind, and encourage us to do more business here."

But until and unless the new government is able to bring the law and order situation in Pakistan under control, demand for the services of private security guards and their expertise will soar.

And business in Pakistan, will continue to be conducted under the shadow of a gun.