News Desk: Tech giant Microsoft has officially shut down its operations in Pakistan, marking the end of a 25-year presence in the country.
The decision, announced on Thursday, is part of the company’s global restructuring strategy that includes a pivot toward a cloud-based, partner-led model and the layoff of 9,100 employees worldwide—approximately 4% of its workforce.
The move has sparked concern among business and political leaders in Pakistan, with many interpreting it as a warning sign of the country’s worsening economic climate.
Microsoft, which never operated a full-scale commercial base in Pakistan, maintained a liaison office primarily focused on enterprise, education, and government clients. Licensing and service contracts were largely managed through regional hubs, notably from Ireland.
Jawwad Rehman, Microsoft Pakistan’s founding country manager, lamented the closure in a LinkedIn post. “This is more than a corporate exit. It’s a sobering signal of the environment our country has created… one where even global giants like Microsoft find it unsustainable to stay,” he wrote. He urged the Pakistani government and IT ministry to initiate bold, KPI-driven engagements with global tech leaders to salvage what remains of investor confidence.
Former President Arif Alvi also expressed alarm on social media, linking the shutdown to Pakistan’s broader economic decline. “Pakistan now spirals in a whirlpool of uncertainty. There is increasing joblessness, our talent is migrating abroad, purchasing power has reduced, and economic recovery feels like a distant & elusive dream,” he posted on X (formerly Twitter). He recalled Bill Gates’ 2022 visit to Pakistan and the awarding of Hilal-e-Imtiaz for contributions to polio eradication, contrasting the optimism then with today’s grim outlook.
Microsoft’s decision to shut down operations in Pakistan is a troubling sign for our economic future. I vividly recall February 2022, when Bill Gates visited my office. On behalf of the people of Pakistan, I had the honor of conferring the Hilal-e-Imtiaz on him for his remarkable… pic.twitter.com/T4SMkp6Mn0
— Dr. Arif Alvi (@ArifAlvi) July 3, 2025
According to The Express Tribune, Microsoft had already begun shifting much of its Pakistan-facing operations to local partners in recent years. The decision to fully exit the country appears to be an outcome of both internal strategy and external challenges, including economic instability, a weak regulatory environment, and declining investor sentiment.
Industry observers note that Microsoft had considered expanding its operations in Pakistan in 2022 but opted for Vietnam instead, citing more favorable conditions for growth and investment.
While Microsoft has not commented further on its exit, the development is being seen as a major blow to Pakistan’s aspirations of becoming a regional tech hub—highlighting the urgent need for reforms and confidence-building among international investors.
