Microsoft: Microsoft said goodbye to Pakistan, wrapped up its bag, 25 years of relationship ended, here are the reasons..

Microsoft, one of the world's leading tech companies, started its operations in Pakistan on 7 March 2000, but on 3 July 2025, without any formal announcement, the company completely shut down its operations in Pakistan. This information came from the statement of Microsoft Pakistan's first country head, Javed Rehman, who called it "the end of an era".

Major reasons for Microsoft's exit
Political and economic instability - Microsoft has not officially given any reason, but industry experts believe that Pakistan's unstable economy, political instability, and weak business environment are the main reasons behind this.

Flattering currency exchange rate (currency value)
High taxation
Limited availability of imported tech hardware
Frequent change of governments
Pakistan's FY 2024 trade deficit reached $24.4 billion, while foreign exchange reserves fell to $11.5 billion by June 2025, badly affecting tech imports and foreign investment.

“It is not the lack of talent, it is the weakness of the system.”
The reason for Microsoft's decision is not the lack of local talent. Both technical capabilities and market demand are present in Pakistan, but companies need political and financial trust, which has been steadily weakening in Pakistan. Uninterrupted movement of money and resources was not possible for the company.

India-Pak trade tensions further increased the problem
Bilateral trade between India and Pakistan has declined from $3 billion in 2018 to $1.2 billion in 2024. Imports of critical items such as medicines are now being done through third countries, which has increased both costs and delays. Geopolitical tensions have further deteriorated the investment environment.

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