Another Setback For Pakistan, This Tech Giant Exists Pakistan After 25 Years | Technology News
New Delhi: Microsoft exited Pakistan after 25 years, citing political instability, economic uncertainty, and tough business conditions. Despite strong local talent and market demand, frequent government changes, a weak currency, and import restrictions made operations unsustainable. Microsoft will now serve Pakistan through partners, highlighting the urgent need for a stable, investor-friendly environment to retain global companies.
In what can be said as setback to Pakistan I.T ambitions it is widely reported that Software giant Microsoft has exited Pakistan after 25 years Microsoft began its operations in Pakistan on March 7, 2000, while their is no official conformation from tech giant itself, The news came from Jawwad Rehman, Microsoft’s founding country head in Pakistan, who called it “the end of an era.” Many people are asking why such a big company would leave after so many years, especially since Microsoft played a major role in Pakistan’s digital growth.
Why did Microsoft leave Pakistan
The main reasons are political instability, economic uncertainty, and tough business conditions. Over the years, Pakistan has seen frequent changes in government, high taxes, a weak and unstable currency, and complicated trade rules. These factors make it very hard for multinational companies to operate smoothly. In 2024, Pakistan had a trade deficit of USD 24.4 billion, and by June 2025, its foreign exchange reserves had dropped to just USD 11.5 billion. This made it difficult for companies to import technology and hardware, and it also hurt investor confidence.
It’s important to note that Microsoft’s exit was not because of a lack of talent or market demand. Pakistan has many skilled tech professionals and a large, growing market. However, the constant political changes, economic problems, and lack of clear business policies created too much risk for long-term investment.
Other factors behind the exit
Global restructuring: Microsoft has been cutting jobs worldwide, with around 9,000 layoffs in 2024–25. Pakistan, being a smaller market for Microsoft, was affected by these changes.
Changing business model: Microsoft said it is shifting to a cloud-based, partner-led model in Pakistan. This means Microsoft will continue to serve Pakistani customers through local partners and regional offices, but will not have a direct office or employees in the country.
Lost opportunities: Former President Arif Alvi mentioned that Microsoft once considered expanding further in Pakistan, but political changes caused the company to choose Vietnam instead.
Impact on Pakistan’s tech sector
Microsoft’s exit is a warning sign for Pakistan’s economy and tech industry. It shows that even top global companies find it hard to stay in a country with ongoing political and economic problems. The departure of such a big name could make other international companies think twice about investing in Pakistan. If these issues are not fixed, more companies might leave in the future.
