Microsoft Ends 25-Year Presence in Pakistan: Partners to Take Over Support
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Microsoft has officially closed its liaison office in Pakistan, halting direct operations after a 25-year presence 🇵🇰. The company confirmed that services and customer agreements will continue via regional hubs and certified resellers, following a globally adopted service model.
Although only five employees—largely focused on enterprise sales for Azure and Office—lost their jobs, the decision is symbolic. It follows a major round of layoffs at Microsoft, which saw around 9,000 global job cuts (about 4% of its workforce), and a strategic shift toward AI, SaaS, and partner-led markets.
Pakistan’s Ministry of IT and Telecommunications clarified that this move represents a global transition to cloud-based delivery and partner networks, not a complete market exit. The ministry stressed its commitment to maintaining Microsoft’s long-term presence through engagement with global leadership and support for local partners.
Yet the closure highlights deeper concerns. Former Microsoft Pakistan head Jawwad Rehman and ex-President Arif Alvi describe the move as a “troubling signal” of Pakistan’s unsettled business environment, citing economic instability, political upheaval, heavy taxation, and currency volatility influencing investor decisions.
Alvi recalled how a potential major Microsoft investment was diverted to Vietnam after political changes in 2022. The decline in foreign direct investment has triggered fears of brain drain as tech talent seeks opportunities elsewhere.
Despite long-standing contributions to Pakistan’s IT education and rural computer labs, Microsoft’s exit leaves a void. Analysts warn the company’s departure could deter future investment and weaken local tech ecosystems.
In summary, Microsoft’s departure reflects both corporate strategies and challenges within Pakistan’s economic and political landscape. While official statements suggest continued support through partners, industry leaders emphasize this as a wake-up call emphasizing the need for stability and proactive policies to retain global tech companies.
