Microsoft has confirmed that it’s closing its direct operations in Pakistan, ending a quarter-century of presence in the country.
Going forward, local customers will be served through authorized resellers and nearby Microsoft offices. The company stressed that existing customer agreements and support won’t be affected by the change. This move aligns with a model Microsoft already uses in several other markets.
According to sources, only about five employees in Pakistan are affected. Notably, Microsoft has never operated full-scale engineering or R&D operations in the country—instead focusing on sales of Azure and Office through this small team
The decision is part of a wider corporate cost-cutting initiative. Microsoft recently laid off around 4% of its workforce, about 9,000 people and continues shifting regional licensing and contracts to centralized hubs such as its base in Ireland.
Pakistan’s Ministry of Information & Broadcasting said the move is purely business-driven, emphasizing that the country’s partnership with Microsoft isn’t ending. Instead, the ministry described the change as a transition toward a partner-led, cloud‑focused service model
Jawwad Rehman, who launched Microsoft’s Pakistan arm, expressed concern on LinkedIn, calling it “more than a corporate exit” and suggesting the country’s business environment played a role. Former president Arif Alvi echoed this view, calling the departure “a troubling sign” and lamenting a missed investment opportunity from 2022.
Microsoft’s exit highlights the broader challenges in Pakistan’s tech ecosystem where few international tech giants maintain engineering setups. The shift casts a spotlight on the country’s regulatory, economic, and political hurdles, though the government says it’s working to ensure continued collaboration with tech firms.
Leave a Comment