Microsoft started its operation on 7 March 2000, in Pakistan, and after 25 years, it exited Pakistan on 3 July 2025. However, Microsoft has not posted anything about it. The news was released by Jawwad Rehman, an employee at Microsoft from 2000 to 2007. What changed? What happened to the values, leadership, and vision? What is the reason for this abrupt exit?
The statement suggests that political instability and economic uncertainty might be the reasons behind this exit. Unstable currency, high taxes, political problems, and complex trading methods cause big companies to step back. Microsoft faced the same thing; it was getting difficult for them to operate in Pakistan, as the government kept changing, and there was unrest in the country. In FY 2024, exports were approximately $38.9 billion, while imports hit around $63.3 billion, which creates a $24.4 billion trade deficit. It seems like it became increasingly difficult for Microsoft to sustain operations in Pakistan.
It surely wasn’t a lack of talent or market demand that forced Microsoft to this decision but deteriorating and unstable political conditions of Pakistan were bound to catch up. When a company can’t even bring their tech tools and earnings freely in and out of the country, how will they go for long-term investment, especially when it’s a multinational one. Pakistan’s central bank’s forex reserves fell to $11.5 billion according to the June 2025 report. These reserves mean companies can’t import hardware. These are just one-year statistics, with a country that faces such a huge number of fluctuations, the possibility of trust decreases.
Bilateral trade with India decreased from $3 billion in 2018 to $1.2 billion in 2024 due to political tension. Critical imports like medicine and chemicals are now rerouted through third countries, which causes delays and higher costs. With all this happening, we can’t blame companies for leaving, rather we should work on making Pakistan worth staying in, a true central hub for innovation and growth. If these issues remain unaddressed, then this is not the last exit; this will be counted as the first of many.
Microsoft has reportedly closed its operations in Pakistan, marking the end of a 25-year chapter for the global tech giant in the country.