Microsoft ends operations in Pakistan after 25 years: Here's why
What's the story
Microsoft has officially shut down its operations in Pakistan after a 25-year run. The decision comes amid economic instability and political turmoil in the country. Jawwad Rehman, the founding country head who brought Microsoft to Pakistan in 2000, confirmed the development on social media. He said, "Today, I learned that Microsoft is officially closing its operations in Pakistan."
Economic factors
Microsoft's exit linked to Pakistan's economic instability
Though Microsoft hasn't publicly commented on its exit, the move is largely attributed to Pakistan's economic instability and political unrest. Frequent government changes, high taxation, currency fluctuations, and import challenges have made it difficult for multinational companies. Pakistan's trade deficit for FY2024 stood at $24.4 billion while foreign exchange reserves dropped to just $11.5 billion by June 2025—directly impacting tech imports and investor confidence.
Political impact
Former President Alvi recalls Gates's investment plans for Pakistan
Former Pakistani President Dr. Arif Alvi weighed in on Microsoft's exit, blaming political instability for lost opportunities. He recalled a meeting with Bill Gates in February 2022 where they discussed AI and quantum computing among other things. During that meeting, Gates had hinted at a major Microsoft investment in Pakistan within two months but those plans were derailed by regime change.
Digital impact
Microsoft's digital transformation efforts in Pakistan
Beyond business, Microsoft had a major role in Pakistan's digital transformation. The company set up computer labs in rural schools, promoted digital adoption among small businesses, and collaborated with educational institutions. Rehman said, "We tried to give Pakistani youth a real shot at opportunity."