Political and economic unrest in the back of the move
While Microsoft has not issued a public explanation, the company’s exit is widely linked to the unstable economy in Pakistan, moving political scenery. Regular changes in government, high taxes, a change of money, and difficulties in import technology challenges multinational corporations.
Pakistan’s deficiency in Pakistan for FY2024 has reached USD 24.4 billion. By June 2025, foreign exchange reserves fell in USD 11.5 billion, directly affected tech imports and general investment trust.
Recalls the former President lost opportunity
Former president of Pakistan Dr. TIF Alvi also responds to development, which links the exit of those who have no chances caused by political incidence.
“Microsoft’s decision to close Pakistan operations is a disturbing sign for our future economy. I know February 2022, when Bill Gates visited my office. For Pakistan people, I have the honor of surrender to Hilal-e-Imtiaz for him for his unique contributions to the poliio in our country.
As we sat on the lawn outside my office, our conversation striking topics such as AI, quotum computing, gut microbiomes, long life, and more. During our discussion, I asked him straight, ‘Why not Microsoft investment in Pakistan?’ He trusted, sharing confidence that he talked to PM to Imran Khan and arranged a call between PM and Microsoft CEO Satya Nadella Nadella. In a rice tone, he asked me to silence it, revealing that ‘everyone was set and for two months, I was going to devel a major investment in Microsoft in Pakistan. The regime opened the plans, and the promise of investment was lost. In October 2022, Microsoft chose Vietnam for this expansion, a decision in which they were first favored Pakistan. Opportunity lost.Pakistan is now spirals in a whirlpool in uncertainty. There is an increasing unemployment, our talent goes abroad, buying power decreases, economic recovery of ‘waami’ context as a distant dream.
A legacy that changed Tech Scene in Pakistan
More in business, Microsoft has played a leading role in the Digital Pakistan journey. It launches computer labs in rural schools, supported digital adoption of small businesses, and employed in educational institutions. “We try to give Pakistani youth a real shot of chance,” says Jawwad Rehman.
India-Pakistan Tension Tensions worsens the environment
Indian trade relationships also harm. Precious trades have fallen from USD 3 billion in 2018 to USD 1.2 billion in 2024. The important imports such as drugs have been routed to third countries, increases delays and expenses. The increasing geopolitical stress increases with the investment climate in Pakistan.
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