Microsoft Pakistan shuts down operations after 25 years: Why is tech giant leaving the country?

Express Tribune

2 days ago

Microsoft has closed its office in Pakistan after 25 years, citing global restructuring and a shift to a cloud-based, partner-led model.
The move comes as the tech giant cuts roughly 9,100 jobs worldwide (or about 4% of its workforce) in its largest layoff round since 2023, as reported by The Verge.
Microsoft never operated a full commercial base in Pakistan, relying instead on liaison offices focused on enterprise, education, and government clients.
Over recent years, much of that work had already shifted to local partners, while licensing and contracts were managed from its European hub in Ireland.
Former president Dr Arif Alvi criticised the decision on social media, calling it a 'troubling sign.'
He claimed Microsoft once considered Pakistan for expansion, but that instability led the company to choose Vietnam instead by late 2022. 'The opportunity was lost,' he wrote.
Microsoft's decision to shut down operations in Pakistan is a troubling sign for our economic future. I vividly recall February 2022, when Bill Gates visited my office. On behalf of the people of Pakistan, I had the honor of conferring the Hilal-e-Imtiaz on him for his remarkable… pic.twitter.com/T4SMkp6Mn0 — Dr. Arif Alvi (@ArifAlvi) July 3, 2025
Jawwad Rehman, Microsoft Pakistan's former founding country manager, said the exit reflected the current business climate.
'Even global giants like Microsoft find it unsustainable to stay,' he posted on LinkedIn.
Tech entrepreneur Habibullah Khan noted that Microsoft's revenue from Pakistan was estimated at just $50 million (less than 0.02% of global revenue) and that much of its local staffing had already been scaled down.
'Their relationship with Pakistan was very tenuous,' he wrote on X.
While Microsoft will continue serving Pakistani customers through regional teams and partners, the closure underscores the growing pressure on multinationals to streamline overseas operations amid changing global priorities.