Legendary tech company Microsoft has covered its work from Pakistan. Microsoft started functioning in Pakistan on 7 March 2000 and completely shut down its functioning on 3 July 2025. The company has become disillusioned with Pakistan in just 25 years. However, there is no official statement from Microsoft on this important decision. Former company employee Jawad Rahman has informed about Microsoft’s return from Pakistan. Rahman was associated with the company from 2000 to 2007 and played an important role in the establishment of Microsoft in Pakistan.
Experts say that in view of political instability and economic uncertainty, Microsoft thought it appropriate to leave Pakistan. Repeatedly changing the government in Pakistan, continuous deteriorating law and order, unstable currency, high tax rates and complex trade policies have made it difficult for multinational companies to work in Pakistan. Microsoft is also not untouched by these challenges. It became difficult for the company to bring its technical equipment and profits to Pakistan. Pakistan’s economic condition is very bad
It is badly in trouble on the economic front. Pakistan’s exports in FY 2024 stood at around $ 38.9 billion, while imports reached $ 63.3 billion, causing the trade deficit to $ 24.4 billion. In addition, by June 2025, the foreign bank of Pakistan’s foreign exchange reserves have come down to $ 11.5 billion, making it difficult for companies to import hardware required.
Business relations with India have also been affected. In 2018, India-Pakistan bilateral trade was $ 3 billion, which has come down to just $ 1.2 billion by 2024. Essential items like medicines and chemicals are now being sent through third countries, due to which both cost and delay are increasing.
And companies can leave Pakistan
Analysts say that if Pakistan’s political and economic situation does not improve, more multinational companies may say goodbye to Pakistan after Microsoft left Pakistan. This is the time when Pakistan has to introspect and make policies that can make the country a safe and attractive destination for global investment and innovation.