Microsoft shuts down operations in Pakistan after 25 years: What happened, why, and more
Microsoft has shut down its operations in Pakistan after 25 years. From the reasons behind the exit to its impact on the tech landscape, here’s a simple 5-point breakdown of what this move means for Pakistan and Microsoft’s future strategy in the region.
Microsoft is officially wrapping up its presence in Pakistan after more than two decades After 26 years in the country, Microsoft has decided to close its operations in Pakistan. The tech giant told TechCrunch that it’s shifting to a new model where it will serve Pakistani customers through regional offices and authorized resellers instead of running a direct office. Microsoft clarified that the change won’t affect existing services or customer agreements. It’s a model they already use in many countries, and they’ve assured users that the quality of service will remain unchanged.
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Only five jobs are directly affected, but the move speaks volumes According to reports, the closure affects just five Microsoft employees in Pakistan. These individuals were primarily responsible for selling products like Microsoft Azure and Office. Unlike markets such as India, Microsoft never set up an engineering base in Pakistan, which means the local team had a relatively limited scope. Still, the exit isn’t just about numbers—it sends a message about the country’s attractiveness (or lack thereof) as a hub for global tech firms.
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The exit is part of a global restructuring effort by Microsoft This isn’t an isolated decision. Microsoft has been undergoing global restructuring, and just days before this announcement, the company cut about 9,000 jobs—roughly 4% of its workforce. Pakistan’s Information and Broadcasting Ministry framed Microsoft’s move as part of this broader workforce optimization. In fact, Microsoft had already begun shifting key functions like licensing and contract management for Pakistan to its European hub in Ireland over the past few years.
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Microsoft’s former Pakistan head calls it a ‘sobering signal’ Jawwad Rehman, who was Microsoft’s first lead in Pakistan, shared his disappointment on LinkedIn. He called the closure more than just a corporate exit—it was, in his words, a “sobering signal” about the kind of business environment Pakistan offers. Rehman believes the country has failed to build on the foundation Microsoft had laid years ago and that the exit reflects poor management and missed opportunities.
The timing of the exit raises eyebrows amid local tech ambitions What makes this move more striking is its timing. Microsoft’s exit comes just days after the Pakistani government announced an ambitious plan to offer IT certifications—including from Microsoft itself—to half a million young people. Meanwhile, Google is not only investing in the country’s education sector but is also exploring Chromebook production in Pakistan. Microsoft’s departure throws a spotlight on Pakistan’s tech ecosystem, which still struggles to attract and retain big-name global companies. Unlike neighboring India, Pakistan hasn’t positioned itself as a major tech outsourcing hub, leaving much of the enterprise market to Chinese firms like Huawei.
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