Posted by Mumbai: Global tech major Microsoft shuts down operations in Pakistan after 25 years, according to media reports. Microsoft has officially ceased its operations in Pakistan, marking the end of a 25-year presence in the country. The decision, finalised on Saturday, follows years of gradual downsizing, particularly in its Islamabad office.
Microsoft shuts down operations in Pakistan
Jawwad Rehman, former Country Manager of Microsoft Pakistan, confirmed the closure in a LinkedIn post, describing the move as the “end of an era.” Rehman, who launched the company’s local operations in June 2000, noted that the remaining staff were formally notified, bringing a definitive close to the company’s presence in the country.
“This is more than just a corporate withdrawal,” Rehman wrote. “It’s a sobering reflection of the environment in our country—one that has made it unsustainable even for global players like Microsoft to operate.”
“We will serve our customers through both our strong and extensive partner organisation, and other closely located Microsoft offices. We follow this model successfully in a number of other countries around the world,” a Microsoft spokesperson told a local news outlet.
The departure has sparked concern across political and business circles.
Former President Dr. Arif Alvi took to social media platform X (formerly Twitter) to express his disappointment, calling the move a “troubling sign” for Pakistan’s economic future. He recalled awarding Bill Gates the Hilal-e-Imtiaz—Pakistan’s second-highest civilian award—in 2022 for his work in polio eradication, during what was a hopeful period of potential investment.
“That momentum has now shifted,” Alvi lamented, attributing Microsoft’s withdrawal in part to political instability, including regime changes and the ouster of former Prime Minister Imran Khan. He added that Microsoft had initially considered expanding operations in Pakistan but ultimately chose Vietnam as a more stable alternative.
“Pakistan now spirals in a whirlpool of uncertainty. Joblessness is rising, our skilled workforce is leaving the country, purchasing power is dwindling, and meaningful economic recovery feels increasingly out of reach,” Alvi warned.
Microsoft’s exit is being viewed not only as a business decision, but as a stark indicator of the broader challenges facing Pakistan’s economic and investment landscape.