Pakistan is facing a major challenge as global tech giants and multinational firms continue to exit the country. One of the most recent and shocking departures was Microsoft, which closed its local office in July 2025, marking the end of 25 years of operations.
Although Microsoft stated that the closure was part of a global restructuring, many in the business community viewed it as a clear sign of Pakistan’s declining business appeal. The company’s exit followed similar decisions by other multinational giants, including Shell, Siemens Energy, Procter & Gamble, Unilever’s Lipton division, and Reckitt Benckiser.
These exits are more than just business losses. Multinational companies helped bring modern practices to Pakistan’s industries. They trained local talent, set high corporate standards, and brought global technology into the country.
So, why are they leaving now?
A key reason is the sharp fall in the value of the Pakistani rupee. Since 2021, the rupee has lost over 50% of its value. This makes it harder for foreign companies to maintain profits when converting them back into their home currency.
Another issue is the strict limits on profit repatriation. The State Bank of Pakistan placed controls that stopped firms from sending earnings abroad. At one point in 2023, over $1 billion in profits were stuck in Pakistan. This made foreign operations risky and unsustainable.
There is also the problem of an unstable policy environment. Frequent tax changes, poor regulation, and political uncertainty have hurt investor confidence. Some companies faced sudden import restrictions or unexpected tax demands, making long-term planning nearly impossible.
Import restrictions between 2022 and 2024 had a significant impact on ring firms. Without access to raw materials, many companies had to store for weeks.
Meanwhile, inflation has weakened the local consumer market. Prices remained high throughout 2023, cutting into the middle class’s spending power. This reduced demand for premium and branded products, hurting multinational sales.
Power issues also add to costs. Even with more electricity production, power cuts, gas shortages, and high tariffs make running factories expensive.
Lastly, global companies are now investing in safer, growing markets like India, Vietnam, and Mexico. Pakistan’s economic and political risks make it a less attractive choice.
Unless Pakistan takes strong steps to fix its economic and policy issues, more companies may follow the same path—out of the country.
