In a move that has shaken Pakistan’s already fragile technology sector, Microsoft has confirmed the closure of its local office, bringing an end to its 25-year presence in the country. As part of its broader global restructuring, the company will now serve Pakistani clients remotely through regional hubs and authorized partners, without maintaining a physical office on the ground.
In a statement to TechCrunch, Microsoft said the change “reflects a model it already uses in various countries,” emphasizing that ongoing customer agreements and services will remain unaffected and that the “quality of support will remain consistent.”
Although the closure impacts only five employees in Pakistan—mostly focused on enterprise sales for Azure and Office—the exit is being viewed as symbolically significant. Unlike India, where Microsoft has a strong development and engineering presence, the company’s operations in Pakistan were limited to sales and liaison functions. The decision has raised concerns about the country’s attractiveness to global tech giants.
The exit coincides with Microsoft’s largest global layoff in recent times, with more than 9,000 jobs being cut worldwide. Pakistan’s Ministry of Information and Broadcasting attributed the local closure to this international downsizing. However, insiders note that Microsoft had already been shifting core operations like licensing and contract management to its European headquarters in Ireland for several years.
Former Microsoft Pakistan country head Jawwad Rehman urged action, writing on LinkedIn, “Even global giants like Microsoft find it unsustainable to stay,” and called on the IT Ministry to pursue “KPI-driven engagement strategies” to retain multinational firms. Former President Arif Alvi also commented, calling the closure “a troubling sign for our economic future.” He disclosed that Microsoft once considered expanding in Pakistan but opted for Vietnam instead due to its political and economic stability. “The opportunity was lost,” he lamented.
The timing has raised eyebrows, as Microsoft’s exit comes just days after Pakistan announced a major upskilling program aiming to certify 500,000 youth with credentials from global tech companies—including Microsoft.
While Google is still exploring local initiatives, including possible Chromebook production, Microsoft’s departure highlights the urgency for Pakistan to create a more stable and attractive environment for international tech investment.
