Microsoft Quits Pakistan! Tech Giant’s Exit Deals Massive Blow To Economy

The U.S tech giant Microsoft has decided upon shutting down its operations in Pakistan amid omnipresent political instability, and business-friendly environment, which has resulted in mass-layoffs affecting 9,000 Microsoft personnel.

The former President of Islamic Republic of Pakistan Dr. Arif Alvi recently highlighted the heightened state of joblessness, talent migration, and a reduction in purchasing power in the country.

Recalling a promising conversation between Bill Gates in 2022, Dr. Arif Alvi said, "During our discussion, I asked him directly, “Why isn’t Microsoft investing in Pakistan?” He leaned in, sharing in confidence that he had just spoken with PM Imran Khan and arranged a call between the PM and Microsoft CEO Satya Nadella. In a hushed tone, he asked me to keep it quiet, revealing that “all is set and within two months, the PM and I will announce a major Microsoft investment in Pakistan.”

Further, he also reminisced that his dialogue with Bill Gates happened during the same time period he had the opportunity of conferring the Hilal-e-Imtiaz on him for his contributions to polio eradication in our country.

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However, the rapid change in Pakistan's political landscape made it not the most viable pick for Microsoft's expansion plans back in the day in the South Asian region.

"Regime change upended those plans, and the promise of investment slipped away. By October 2022, Microsoft chose Vietnam for its expansion, a decision in which they had initially favored Pakistan. The opportunity was lost," the 13th President of Pakistan tweeted.

Commenting on the present-day scenario, he said, "Pakistan now spirals in a whirlpool of uncertainty. There is increasing joblessness, our talent is migrating abroad, purchasing power has reduced, economic recovery in the 'awami' context feels like a distant & elusive dream."

Reportedly, Microsoft spokesperson informed that as a part of regular process of business evaluation and optimization, the company was altering their operating model in Pakistan. 

“Our customer agreements and service will not be affected by this change. We will serve our customers through both our strong and extensive partner organization, and other closely located Microsoft offices,” the official said. 

Meanwhile, Dr. Alvi voiced his remedy being political dialogue among stakeholders, however, the public opinion reflects "deep disillusionment with the current arrangement & the electoral process".