Microsoft has announced plans to shut down its local operations in Pakistan, bringing its 25-year presence in the country to an end. The company will adjust its business model in Pakistan by shifting customer support and management of operations to resellers and other nearby Microsoft offices.
“Our customer agreements and service will not be affected by this change,” said a Microsoft spokesperson, adding, “We have successfully adopted this model in other markets around the globe. Customers in Pakistan will continue receiving the same high-quality service from Microsoft.”
The decision will directly affect five Microsoft employees stationed within the country. Notably, the company had no engineering resources or dedicated teams in Pakistan, unlike its substantial presence in neighboring markets such as India. Its team in Pakistan primarily focused on the sales of Azure cloud and Office products.
Microsoft’s withdrawal from Pakistan is part of ongoing global workforce optimization. Recently, the tech giant announced a reduction of its worldwide workforce by around 9,000 positions, roughly 4% of its employees worldwide, to streamline international operations. Over recent years, Microsoft had gradually transitioned Pakistan’s licensing and commercial contracts handling to its European hub located in Ireland, relying in parallel upon certified local partners for day-to-day services.
The Pakistani Ministry of Information and Broadcasting characterized Microsoft’s exit as part of a broader operational restructuring. The ministry noted that it would continue engaging with the company’s regional management to ensure that Microsoft’s commitment to Pakistani consumers, developers, and channel partners remained robust.
Jawwad Rehman, Microsoft’s former executive and first country lead in Pakistan, shared his reflection on the matter via LinkedIn. He described Microsoft’s decision as more than just a corporate departure, calling it a sobering indication of the challenging business environment within Pakistan. Rehman expressed concern over what he saw as lost potential from the strong foundation his team initially built in the country.
Microsoft’s decision is particularly striking given the Pakistani government’s recent announcement to provide half a million IT certifications from tech giants, including Microsoft and Google, to youth across the country. Microsoft’s departure sharply contrasts with Google’s increased commitment, underscored by its recent $10.5 million investment in Pakistan’s public education system and plans to manufacture half a million Chromebooks in the country by 2026.
Overall, Microsoft’s move reflects broader difficulties within Pakistan’s technology landscape. Unlike India and other regional peers, Pakistan has not positioned itself effectively as an engineering outsourcing hub for global technology giants. Rather, the market is split between domestic technology firms, with local development capabilities, and Chinese companies such as Huawei, which have established significant market share by delivering enterprise infrastructure solutions to major industries, including banking and telecommunications.
Pakistan’s Information and Broadcasting Ministry has yet to respond publicly to questions or requests for comment.
