Microsoft is ending its operations in Pakistan after 25 years

Pakistan’s tech landscape has been shaken by Microsoft’s announcement of the closure of its local office. The tech giant is ending a 25-year presence in the country. As part of its global workforce reduction strategy including political and economic instability, it will now serve Pakistani clients remotely. The company quickly reassured that the current customer agreements and services will remain unchanged and that the quality of support will remain consistent. The decision comes as a result of the company reducing its global workforce by 9,000 employees and marks the end of an era for one of the world’s most influential firms in Pakistan.

Jawwad Rehman, who was once the head of Microsoft Pakistan, called on the government to take proactive measures to retain and attract global tech players “Even global giants like Microsoft find it unsustainable to stay,” he wrote a straightforward LinkedIn post urging the IT ministry to begin engaging with multinational firms through KPI-driven strategies. Former President Arif Alvi shared his thoughts on social media, stating that Microsoft’s decline is a worrying sign for our economic future.

Microsoft has relocated its licensing and commercial contract functions for Pakistan to its European hub in Ireland in recent years. Microsoft had the idea of expanding its presence in Pakistan in 2022, but the rising instability led the company to move to Vietnam instead. Over the last two years, the tech giant has closed multiple support programs and stopped new partnerships in the region. According to reports, certified Pakistani partners have been in charge of local service delivery, which is predicted to continue despite the office closure. Microsoft’s departure serves as a wakeup call to Pakistan as they gear up for digital transformation, highlighting the need for stability and clear policy direction.