DNA Analysis: Microsoft’s Exit Raises Alarms Over Pakistan’s Worsening Business Climate | India News
Pakistan is grappling with a critical question: Will any major company or business remain in the country? Social media is flooded with concern over the nation’s worsening business climate, a debate intensified by the recent exit of a global tech giant after 25 years.
In today’s DNA, Zee News Managing Editor Rahul Sinha explains why big companies like Microsoft are leaving Pakistan.
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One of the world’s largest IT companies, Microsoft, has shut down all its offices in Pakistan. Microsoft opened its first office in Pakistan in 2000, but within 25 years, the company has been forced to leave the country. The company’s Pakistan head said the decision was due to industrial policies in Pakistan that had become increasingly challenging for the company.
The world has seen many reports about rising inflation in Pakistan. The country’s collapsing economy makes headlines on news channels almost every other day. Amid all this, a bitter truth about Pakistan has come to light today. Not only Microsoft, but many global companies have left Pakistan in recent years.
In the pharmaceutical sector, major companies like Pfizer, Upjohn, Parke-Davis, and Wyeth no longer operate factories or offices in Pakistan. FMCG giant Procter & Gamble has also distanced itself from the country. In the auto sector, Suzuki has shut down its factories in Pakistan. Banks like Barclays, ABN-AMRO, and HSBC have also closed their operations in Pakistan.
Why Are Major Companies Pulling Out f Pakistan?
Now you might be wondering: What has happened in Pakistan to force such big companies to say goodbye to Karachi and Lahore? Let’s look at the reasons behind the saying, “You can do business anywhere in the world, but not in Pakistan.” Take a look and understand these factors.
The biggest challenge for companies in Pakistan is foreign investment. Due to terrorism and instability, foreign investors are reluctant to invest large sums in Pakistan. The second major reason is the depreciation of Pakistan’s currency—since 2018, the currency has dropped by 40 percent. The third challenge for industries is the rising cost of fuel, which makes transportation expensive. The fourth challenge might make you laugh, but it’s a harsh reality—frequent power cuts and unreliable electricity supply are also driving companies out of Pakistan.
In Pakistan’s politics and system, only two agendas have always been prioritized: hatred towards India and terrorism. As a result, Pakistan has reached a point from which it is almost impossible to return. The poison sown by the rulers and the military is now being reaped by ordinary Pakistanis.
