Political and financial chaos behind the transfer
Whereas Microsoft has not issued a public clarification, the corporate’s exit is extensively linked to Pakistan’s unstable economic system, shifting political panorama, and weakening commerce situations. Frequent modifications in authorities, excessive taxes, a fluctuating foreign money, and difficulties in importing know-how have made the setting difficult for multinational firms.
Pakistan’s commerce deficit for FY2024 reached USD 24.4 billion. By June 2025, international change reserves had fallen to simply USD 11.5 billion, instantly affecting tech imports and total investor confidence.
Former President remembers misplaced alternative
Former President of Pakistan Dr. Arif Alvi additionally responded to the event, linking the exit to missed alternatives brought on by political instability.
“Microsoft’s determination to close down operations in Pakistan is a troubling signal for our financial future. I vividly recall February 2022, when Bill Gates visited my workplace. On behalf of the folks of Pakistan, I had the glory of conferring the Hilal-e-Imtiaz on him for his outstanding contributions to polio eradication in our nation.
As we sat within the garden outdoors my workplace, our dialog spanned fascinating subjects like AI, Quantum computing, intestine microbiomes, longevity, and extra. Throughout our dialogue, I requested him instantly, ‘Why isn’t Microsoft investing in Pakistan?’ He leaned in, sharing in confidence that he had simply spoken with PM Imran Khan and organized a name between the PM and Microsoft CEO Satya Nadella. In a hushed tone, he requested me to maintain it quiet, revealing that ‘all is about and inside two months, the PM and I’ll announce a significant Microsoft funding in Pakistan.’However then, every little thing went quickly downhill. Regime change upended these plans, and the promise of funding slipped away. By October 2022, Microsoft selected Vietnam for its growth, a choice during which they’d initially favored Pakistan. The chance was misplaced.Pakistan now spirals in a whirlpool of uncertainty. There’s rising joblessness, our expertise is migrating overseas, buying energy has diminished, financial restoration within the ‘awami’ context seems like a distant & elusive dream.
A legacy that reworked Pakistan’s tech scene
Past enterprise, Microsoft performed a number one function in Pakistan’s digital journey. It launched pc labs in rural faculties, supported digital adoption amongst small companies, and labored with academic establishments. “We tried to provide Pakistani youth an actual shot at alternative,” mentioned Jawwad Rehman.
India-Pakistan commerce tensions worsen the setting
Commerce relations with India have additionally deteriorated. Bilateral commerce dropped from USD 3 billion in 2018 to USD 1.2 billion in 2024. Important imports reminiscent of medicines are actually routed by means of third international locations, rising delays and prices. This rising geopolitical stress has additional weakened Pakistan’s funding local weather.
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