Microsoft Shuts Down Operations in Pakistan

Karachi: Tech giant Microsoft announced the closure of its limited operations in Pakistan as part of its global restructuring strategy aimed at reducing the workforce, a move described on Friday by stakeholders as a “worrying indication” for the country’s economy. After 25 years, Microsoft closed its Pakistan office on Thursday, citing a shift toward a.

Karachi: Tech giant Microsoft announced the closure of its limited operations in Pakistan as part of its global restructuring strategy aimed at reducing the workforce, a move described on Friday by stakeholders as a “worrying indication” for the country’s economy.

After 25 years, Microsoft closed its Pakistan office on Thursday, citing a shift toward a cloud-based, partner-led model and broader global organizational changes. This decision coincides with the company’s largest layoff round since 2023, which saw around 9,100 employees—about 4% of its global workforce—being laid off.

Jawwad Rehman, the former founding Country Manager of Microsoft Pakistan, urged the government and IT minister to engage proactively with major tech companies through a KPI-driven plan to attract investment. He remarked that the exit “reflects the current challenging business environment,” adding, “Even global giants like Microsoft find it unsustainable to operate here.”

Former Pakistani president Arif Alvi also voiced concerns on social media, describing the shutdown as “a troubling sign for our economic future.” He noted that Microsoft had previously considered expanding in Pakistan, but instability in the country led the company to choose Vietnam instead by late 2022, effectively “losing that opportunity.”

Rehman further explained that Microsoft did not maintain a full commercial base in Pakistan. Instead, it relied on liaison offices focusing on enterprise, education, and government clients, with much of that work having shifted to local partners in recent years. Licensing and contractual matters were managed through its European office in Ireland.