Microsoft Shuts Down Pakistan Office After 25 Years

Microsoft has ended its 25-year presence in Pakistan by closing its office and laying off staff as part of a global restructuring effort. The decision, announced on July 3, 2025, affects a small team of five employees focused on enterprise sales of services like Azure and Office. The company will now serve Pakistani clients remotely through regional hubs and authorized resellers, aligning with its shift to a cloud-based, partner-led model.

The closure has sparked concerns about Pakistan’s economic and tech landscape. Former President Arif Alvi described it as a worrying signal for the country’s economy, citing political instability and missed investment opportunities. He noted that Microsoft had considered expanding in Pakistan in 2022 but opted for Vietnam due to changes in government and policy uncertainty. The move aligns with Microsoft’s broader layoffs, impacting 9,100 employees globally—about 4% of its workforce—in its largest reduction since 2023.

Pakistan’s tech sector, contributing $3.5 billion in exports, faces challenges with a trade deficit of $24.4 billion and foreign exchange reserves at $11.5 billion by June 2025. The departure of Microsoft, which began operations in Pakistan on March 7, 2000, raises questions about the country’s ability to retain global tech firms amid economic and regulatory hurdles. Local partners will take on some responsibilities, but the absence of direct Microsoft operations may impact innovation and technology adoption in the region.

Jawwad Rehman, former head of Microsoft Pakistan, shared the news on social media, highlighting the closure’s significance. Despite the exit, Microsoft emphasized that customer services will remain unaffected, leveraging its established model of remote operations used in other countries.

Published in SouthAsianDesk, July 5th, 2025

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