Microsoft Exits Pakistan After 25 Years: A Troubling Sign for the Economy?

      
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Microsoft Exits Pakistan: Microsoft has given a big blow to Pakistan. The giant tech company Microsoft has stopped its work in Pakistan. Microsoft has officially decided to exit Pakistan after 25 years. This information has been given by the CEO who started the company in Pakistan in 2000. Let us tell you that Microsoft started its work in Pakistan on March 7, 2000, and now the company has stopped its work without any formal announcement.

Microsoft Exits Pakistan
Microsoft Exits Pakistan

Jawad Rehman’s Statement On Microsoft Exits Pakistan

“Today, I learned that Microsoft is officially shutting down operations in Pakistan. The few remaining employees have been formally informed and just like that, an era has come to an end…”, said Jawad Rehman, founding country head of Microsoft in Pakistan. Let us tell you that the company is currently in discussions to lay off around 9,000 employees globally.

Political and Economic Chaos Behind This Move

Microsoft has yet to issue any public clarification, but the company’s exit is widely linked to Pakistan’s unstable economy, changing political landscape and weakening business conditions. Frequent changes in government, high taxes, volatile currency and difficulties in importing technology have made the environment challenging for companies. Pakistan’s trade deficit reached US$24.4 billion in FY 2024. By June 2025, foreign exchange reserves fell to just US$11.5 billion, directly impacting technology imports and investor confidence.

Microsoft Exits Pakistan: Former President of Pakistan’s Statement

Former President of Pakistan Dr Arif Alvi said, “Microsoft’s decision to Microsoft Exits Pakistan is a worrying sign for our economic future. I remember very well the incident of February 2022, when Bill Gates came to my office.

On behalf of the people of Pakistan, I had the honour of conferring on him the Hilal-e-Imtiaz for his outstanding contribution towards polio eradication in our country.”

But then, everything went downhill fast. A change of power overturned those plans, and the promised investment dried up. By October 2022, Microsoft chose Vietnam for their expansion, a decision they had initially favoured over Pakistan.

The opportunity was lost. Pakistan is now caught in a vortex of uncertainty. Unemployment is rising, our talent is going abroad, and purchasing power has decreased.
Microsoft & pakistan

Beyond business, Microsoft played a leading role in Pakistan’s digital journey. It launched computer labs in rural schools, supported digital adoption among small businesses, and worked with educational institutions.
“We tried to give real opportunities to Pakistani youth,” said Jawad Rehman.

India-Pakistan trade tensions worsen the atmosphere Trade relations with India have also deteriorated in recent years following terror attacks and India’s retaliation. Bilateral trade is set to fall from $3 billion in 2018 to $1.2 billion in 2024

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