Microsoft shuts down Pakistan operations after 25 years amid global restructuring and layoffs

India Today

19 hours ago

In a move that has rattled Pakistan's already fragile tech landscape, Microsoft has announced the closure of its local office, ending a 25-year presence in the country. The tech giant, as part of its global workforce reduction strategy, will now serve Pakistani clients remotely through its regional hubs and authorised resellers, rather than maintaining a direct presence on the ground. Microsoft confirmed the shift in a statement to TechCrunch, saying it reflects a model it already uses in various countries. The company was quick to assure that existing customer agreements and services will continue unaffected, and that the quality of support will remain consistent.advertisementThe decision, though affecting only five employees locally, has sent shockwaves through Pakistan's business and tech communities. These individuals were largely focused on enterprise sales of Microsoft services such as Azure and Office. Unlike in India, Microsoft never established a development or engineering base in Pakistan, limiting its footprint to liaison and sales operations. Still, the withdrawal is being seen as more symbolic than numerical, a troubling signal about Pakistan's appeal to international tech players.However, the move coincides with Microsoft's largest round of global job cuts, with over 9,000 positions recently being slashed worldwide. Pakistan's Ministry of Information and Broadcasting has attributed the company's exit to this wider organisational restructuring. In reality, Microsoft had already been quietly transitioning core functions such as licensing and contract management to its European hub in Ireland over the past few years.
Former Microsoft Pakistan country head Jawwad Rehman urged the government to take proactive steps to retain and attract global tech players. 'Even global giants like Microsoft find it unsustainable to stay,' he wrote in a candid LinkedIn post, calling on the IT ministry to initiate KPI-driven engagement strategies with multinational firms.
Former President Arif Alvi also weighed in on social media, labelling Microsoft's retreat as 'a troubling sign for our economic future.' Alvi revealed that Microsoft had once considered expanding its operations in Pakistan but ultimately chose Vietnam due to the latter's greater political and economic stability. 'The opportunity was lost,' he added.
The timing of Microsoft's exit has raised further eyebrows, especially as it comes just days after the government announced an ambitious initiative to provide half a million young people with global IT certifications, including those from Microsoft itself. The disconnect between policy ambition and on-ground corporate confidence has laid bare the challenges facing Pakistan's tech ecosystem.advertisementWhile Google continues to invest in local educational initiatives and is even exploring Chromebook manufacturing in Pakistan, Microsoft's quiet withdrawal underscores a broader issue: Pakistan has yet to position itself as a serious player in the global tech outsourcing arena. In contrast to neighbouring India, which has built a thriving IT export economy, Pakistan's tech space is often dominated by regional players such as Huawei, with global giants remaining hesitant.As Pakistan eyes digital transformation, Microsoft's departure is a wake-up call, one that highlights the need for stability, clear policy direction, and stronger engagement with the global tech community.- Ends