'Pakistan In A Whirlpool...': Ex-President Links Microsoft Deal Collapse To Regime Change
Stating that Microsoft's decision to shut down operations in Pakistan is a "troubling sign" for the nation's economic future, Arif Alvi links it to regime change in the country.
Even as global tech giant Microsoft has decided to close down its operations in Pakistan after 25 years of service in the country as part of its latest mass layoffs of 9,000 employees, Pakistan's former president Arif Alvi said Pakistan is now spiralling into a whirlpool of uncertainty. He added that there is increasing joblessness, talent migration, and a reduction in purchasing power in the country.
'Pakistan now spirals in a whirlpool of uncertainty. There is increasing joblessness, our talent is migrating abroad, purchasing power has reduced, economic recovery in the 'awami' context feels like a distant & elusive dream," said Arif Alvi in a post on X.
Stating that Microsoft's decision to shut down operations in Pakistan is a 'troubling sign" for the country's economic future, he linked the company's move to the regime change in the country.
'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 contributions to polio eradication in our country," he added.
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
Recalling his conversation with Gates, Alvi said they sat in the lawn outside his office, and conversation spanned fascinating topics like AI, Quantum computing, gut microbiomes, longevity, and more.
'During our discussion, I asked him directly, 'Why isn't Microsoft investing in Pakistan?" He leaned in, sharing in confidence that he had just spoken with PM Imran Khan and arranged a call between the PM and Microsoft CEO Satya Nadella. In a hushed tone, he asked me to keep it quiet, revealing that 'all is set and within two months, the PM and I will announce a major Microsoft investment in Pakistan," Alvi said.
'But then, everything went rapidly downhill. Regime change upended those plans, and the promise of investment slipped away. By October 2022, Microsoft chose Vietnam for its expansion, a decision in which they had initially favored Pakistan. The opportunity was lost," he added.
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, Alvi said.
Jawwad Rehman, who set up and led Microsoft's Pakistan unit, informed about Microsoft's decision to close down its operations in the country in a LinkedIn post.
According to theregister.com, a Microsoft spokesperson said, 'As a part of regular process of business evaluation and optimization, we are changing our operating model in Pakistan. Our customer agreements and service will not be affected by this change. We will serve our customers through both our strong and extensive partner organization, and other closely located Microsoft offices."
We follow this model successfully in a number of other countries around the world. Our customers remain our top priority and can expect the same high level of service going forward, the spokesperson said.
On Wednesday, July 2, IT giant Microsoft said it is laying off about 9,000 employees, or 4% of its workforce, in the latest round of job cuts. The latest layoffs are part of Microsoft's restructuring efforts amid AI investments. The company began sending out layoff notices Wednesday.
This is the third round of layoffs this year, after about 6,000 jobs cuts (3% of its workforce) in May and over 300 sackings just a week after. In a statement, Microsoft said the cuts will affect multiple teams around the world, including its sales division and its Xbox video game business.
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