Microsoft shuts down operations in Pakistan after 25 years, ex-president calls it a ‘troubling sign for country’

Microsoft has officially shut its operation in Pakistan after 25 years, according to the CEO who launched the tech giant’s presence in the country in 2000.

The company, which entered Pakistan on March 7, 2000, cited global restructuring and a shift to a cloud-based, partner-led model as reasons behind the closure.

Why did Microsoft exit the country?

While Microsoft has not yet issued any formal announcement, leaders attribute the company’s exit to Pakistan’s economic turmoil and shifting political landscape.

The decision comes as the tech giant cut roughly 9,100 jobs worldwide in its largest layoff round since 2023.

The company’s founding country head in Pakistan, Jawwad Rehman announced the change on LinkedIn by saying, “Today, I learned that Microsoft is officially closing its operations in Pakistan. The last few remaining employees were formally informed and just like that, an era ends.”

How does it affect Pakistan’s tech ecosystem?

Microsoft already clarified that the decision won’t affect existing services or customer agreements as it will keep serving Pakistani customers through regional offices and authorized resellers instead of running a direct office.

This new model is being used in many countries, and they’ve assured users that the quality of service will remain unchanged, the tech giant told TechCrunch.

Even though the business might not face a big hit, it might impact Pakistan’s digital journey as Microsoft played a leading role in it.

It launched computer labs in rural schools, supported digital adoption among small businesses, and worked with educational institutions. “We tried to give Pakistani youth a real shot at opportunity,” said Rehman.

Leaders react to the decision

In a dramatic turn of events, former Pakistani President Arif Alvi connected Microsoft’s exit to a bigger political picture. “Microsoft’s decision to shut down operations in Pakistan is a troubling sign for our economic future,” he said on X (formerly twitter).

The ex-President recalled his conversation with Bill Gates who hinted at plans of a majorMicrosoft investment in Pakistan. “But then, everything went rapidly downhill. Regime change upended those plans, and the promise of investment slipped away.”

He also warned that Pakistan now spirals in a whirlpool of uncertainty.

“The only path forward is through political dialogue among stakeholders. Public opinion, as many know, reflects deep disillusionment with the current arrangement & the electoral process. Yet, a vast majority still believes that dialogue is the only way to navigate this crisis,” he said.