Microsoft closes Pakistan operations after 25 years
Microsoft has closed its Pakistan operations after 25 years. The company has changed its business model in Pakistan and will now provide services in the country through resellers and nearby Microsoft offices.
Microsoft's Operational Restructuring: Ensure Continued Commitment to Pakistan
Microsoft is closing its local operations in Pakistan | TechCrunch
https://techcrunch.com/2025/07/04/microsoft-is-closing-its-local-operations-in-pakistan/
A Microsoft spokesperson confirmed to TechCrunch that the company would be closing its operations in Pakistan, but said the change would not affect customer contracts or services in the country. 'We have successfully run this business model in many countries around the world,' the Microsoft spokesperson said. 'Our customers come first, and you can expect the same high level of service from us.'
According to the sources, the closure of the Pakistan operation will only affect five employees who worked in the office there, and unlike India and other growth markets, the Pakistan operation does not have engineering resources and only sells Azure and Office products in the country.
The Pakistan Press Information Bureau described the closure of Microsoft's Pakistan operations as 'part of a broader workforce optimization program.' Microsoft is laying off 9,000 employees, or 4% of its total workforce, by July 2025, so it is believed that the closure of its Pakistan operations is part of this plan.
Microsoft fires 9,000 employees, equivalent to 4% of its total workforce, halting development of reboot of 'Perfect Dark' and closing studio - GIGAZINE
According to the Press Information Bureau, in preparation for the closure of its Pakistan operations, over the past few years the company has transferred its licensing and commercial contract management for Pakistan to its European base in Ireland and outsourced the day-to-day provision of services in the country to certified local partners.
'We will continue to engage with Microsoft's regional and global leadership to ensure that any structural changes strengthen, not weaken, Microsoft's long-term commitment to its customers, developers and channel partners in Pakistan,' the press information bureau said.
Jawad Rehman, a former Microsoft executive and its first head of operations in Pakistan, announced on the business social networking site LinkedIn that he has left the company following the company's closure of its Pakistan operations.
'This is not just a company leaving. It's a sobering signal of the environment we've created, where even a global giant like Microsoft has difficulty staying here. It also forces us to reflect on how Microsoft's successor team and regional management have leveraged (or not) the strong foundation they left behind,' Lehmann wrote in the post.
Microsoft's withdrawal from Pakistan comes just days after the Pakistani government announced plans to provide 500,000 young people with IT certifications from technology companies such as Google and Microsoft. In contrast to Microsoft's move, Google has announced that it will invest $10.5 million in Pakistan's public education sector in 2024. Google is also considering producing 500,000 Chromebooks in Pakistan by 2026.
TechCrunch reports that 'Microsoft's withdrawal reflects broader challenges facing Pakistan's tech sector. Unlike India and other regional markets, Pakistan has not been able to establish itself as a major engineering outsourcing destination for Western tech giants. Instead, Pakistan's tech ecosystem is dominated by two major players: local companies that have built their own engineering capabilities, and Chinese companies like Huawei that have captured significant market share by providing enterprise-grade infrastructure to telecommunications companies and banks.'
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