Using holography, we discuss the effects of an external static electric field on the D3/D-instanton theory at zero-temperature, which is a quasi-confining theory, with confined quarks and deconfined gluons. We introduce the quarks to the theory by embedding a probe D7-brane in the gravity side, and turn on an appropriate $U(1)$ gauge field on the flavor brane to describe the electric field. Studying the embedding of the D7-brane for different values of the electric field, instanton density and quark masses, we thoroughly explore the possible phases of the system. We find two critical points in our considerations. We show that beside the usual critical electric field present in deconfined theories, there exists another critical field, with smaller value, below which no quark pairs even the ones with zero mass are produced and thus the electric current is zero in this (insulator) phase. At the same point, the chiral symmetry, spontaneously broken due to the gluon condensate, is restored which shows a first order phase transition. Finally, we obtain the full decay rate calculating the imaginary part of the DBI action of the probe brane and find that it becomes nonzero only when the critical value of the electric field is reached.
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