Islamabad, July 5 — Global tech giant Microsoft has shut down its limited operations in Pakistan after 25 years, citing global restructuring and a pivot toward a cloud-based, partner-led business model.
The closure, announced Thursday, is part of Microsoft’s broader decision to cut around 9,100 jobs worldwide approximately 4 per cent of its global workforce in the company’s largest round of layoffs since 2023.
The move has sparked concerns among Pakistan’s business and political leaders about the country’s economic environment and future prospects in the global tech landscape.
Jawwad Rehman, former founding Country Manager of Microsoft Pakistan, called the exit a reflection of challenging business conditions. “Even global giants like Microsoft find it unsustainable to stay,” he wrote on LinkedIn, urging Pakistan’s government and IT ministry to proactively engage with multinational firms using clear, performance-driven strategies.
Former President Arif Alvi echoed the alarm, calling Microsoft’s exit a “troubling sign for our economic future” in a post on social media platform X. Alvi claimed that Microsoft had once considered expanding operations in Pakistan but ultimately shifted focus to Vietnam by late 2022 due to political and economic instability. “The opportunity was lost,” he wrote.
According to Jawwad, Microsoft did not maintain a full commercial office in Pakistan. Instead, it operated a liaison office focused on enterprise, education, and government clients. In recent years, much of this work transitioned to local partners, with licensing and contracts managed out of Microsoft’s European hub in Ireland.
While Microsoft’s departure may not immediately disrupt the country’s IT services, analysts say it signals broader concerns about Pakistan’s business climate, already strained by political uncertainty and economic challenges.
