Microsoft has officially ceased its operations in Pakistan after 25 years, a move attributed to the country's economic instability and political turmoil.

Jawwad Rehman, the former country manager for Microsoft Pakistan, noted that this decision underscores a challenging business environment and highlights a lost opportunity for growth in the tech sector.

Rehman questioned the changes in Pakistan that prompted this corporate exit, urging a reflection on the values and leadership that once supported Microsoft's presence.

He called on the Pakistani government and IT minister to adopt a KPI-driven approach to engage with technology firms and improve the business landscape.

Despite the closure, Microsoft will continue to serve customers through resellers and regional offices, ensuring that customer agreements and service levels remain unaffected.

While Microsoft's revenue from Pakistan was relatively small, estimated at $50 million, the exit has significant implications for the future of the tech industry in the country.

During its tenure, Microsoft made notable contributions to Pakistan's digital landscape, including establishing computer labs in rural schools and promoting digital literacy.

The Ministry of Information Technology characterized the closure as a strategic realignment rather than a complete withdrawal from the market.

This exit signals a troubling trend for Pakistan, potentially deterring other multinational companies, while India continues to attract global tech investments due to its stability.

Pakistan is grappling with rising joblessness, skilled labor migration, and inflation, complicating its economic recovery efforts.

Deteriorating trade relations with India have exacerbated Pakistan's economic situation, with bilateral trade plummeting from $3 billion in 2018 to $1.2 billion in 2024.

Political instability has been highlighted as a major factor in Microsoft's withdrawal, with calls for political dialogue to address the ongoing crisis.