Services to continue through regional offices and local partners
After a 25-year run, Microsoft has officially shut down its local operations in Pakistan. The tech giant confirmed the closure, citing a shift in its operational model. The company will now serve the Pakistani market through regional offices and certified resellers.
In a statement to TechCrunch, Microsoft clarified that customer agreements and services in Pakistan will remain unaffected. “We follow this model successfully in many other countries,” the spokesperson said.
Only five local employees affected
According to sources, Microsoft had a small presence in Pakistan with just five employees. These staffers mainly handled sales of Azure and Office products. The company had no engineering or development teams based in the country, unlike in India and other growing markets.
The closure is part of a broader restructuring plan. Microsoft recently announced a 4% global workforce reduction, cutting around 9,000 jobs worldwide. Pakistan’s Information and Broadcasting Ministry referred to the move as part of Microsoft’s global “workforce-optimization program.”
Transition already underway
Microsoft had already begun shifting its licensing and commercial contract operations for Pakistan to its European hub in Ireland. Local partners have been managing on-ground service delivery for several years.
The ministry emphasized that they will continue engaging with Microsoft’s regional leadership. Their goal is to ensure that changes in structure do not weaken the company’s commitment to Pakistan’s tech sector.
Reactions from former leadership
Jawwad Rehman, Microsoft’s first country lead in Pakistan, reacted to the news on LinkedIn. He called the exit “a sobering signal of the environment our country has created.” His post also suggested that the foundation built during Microsoft’s early years in Pakistan may not have been sustained effectively.
Exit contrasts with Google’s growing interest
Microsoft’s exit comes shortly after Pakistan’s federal government announced plans to offer IT certifications from global tech firms, including Microsoft. Ironically, the company’s departure now casts a shadow over those efforts.
In contrast, Google has taken steps to deepen its presence in Pakistan. Last year, it announced a $10.5 million investment in the country’s public education sector. It also aims to produce 500,000 Chromebooks in Pakistan by 2026.
A larger challenge for Pakistan’s tech scene
Microsoft’s decision highlights the challenges facing Pakistan’s tech ecosystem. Unlike India, the country has not become a major outsourcing hub for global tech giants. Much of the local tech space is led by domestic companies or Chinese firms like Huawei, which have strong ties with banks and telecom providers.
Microsoft’s exit may not impact day-to-day services, but it raises questions about the long-term investment climate for foreign tech firms in Pakistan.
