- Microsoft ends its direct presence in Pakistan, shifting services to regional offices and partners.
- The move affects five employees and is part of a broader global layoff involving 9,000 roles.
- Local operations had already been transitioning to Ireland for licensing and contract management.
- Pakistan’s government vows continued engagement with Microsoft despite the local office closure.
After more than two decades of direct presence, Microsoft has officially closed its local operations in Pakistan. The company confirmed the development on July 4, 2025, stating that it will now serve its Pakistani customers through authorized resellers and regional offices, instead of maintaining a local office.
The decision affects five employees based in the country. Microsoft clarified that the change will not impact ongoing customer agreements or the level of service provided. “Our customers remain our top priority and can expect the same high level of service,” a company spokesperson said in an emailed statement.
Part of Broader Global Restructuring
The exit is part of Microsoft’s broader global restructuring strategy. Just days before the announcement, the company laid off 4% of its global workforce, roughly 9,000 employees. Pakistan’s Information and Broadcasting Ministry described the move as part of a larger “workforce-optimization program.”
In recent years, Microsoft has already started shifting its business operations for Pakistan to its European hub in Ireland. Licensing and commercial contract management had been transferred gradually, while certified local partners continued to provide support on the ground.
Industry Reaction and Local Impact
Jawwad Rehman, Microsoft’s first country lead in Pakistan, called the exit “more than a corporate decision” in a post on LinkedIn. “It’s a sobering signal of the environment our country has created, one where even global giants find it unsustainable to remain,” Rehman wrote. He also suggested that the foundation built during Microsoft’s earlier years in Pakistan was not adequately maintained.
Pakistan’s Ministry of Information and Broadcasting has pledged to stay engaged with Microsoft’s global and regional teams, aiming to ensure continued investment and support for local developers, businesses, and channel partners.
Contrasting Moves by Other Tech Giants
Microsoft’s departure stands in stark contrast to Google’s recent activity in the region. Google invested $10.5 million in Pakistan’s public education sector in 2024 and has expressed interest in manufacturing 500,000 Chromebooks in the country by 2026.
Meanwhile, Pakistan’s government had only recently announced plans to offer IT certifications, featuring Microsoft and Google to half a million young people.
The tech ecosystem in Pakistan continues to face structural hurdles. Unlike India, the country has not emerged as a strong destination for engineering outsourcing. Instead, the local market is shaped by domestic tech companies and Chinese firms such as Huawei, which have established a firm presence in sectors like telecommunications and banking.
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