Microsoft shuts its Pakistan office after 25 years, sparks economic concerns

Tech giant Microsoft has announced to shut down its limited operations in Pakistan as part of its global strategy to reduce workforce, which various stakeholders termed on Friday as a “troubling sign” for the country's economy.

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Microsoft, while closing its office in Pakistan on Thursday after 25 years, cited global restructuring and a shift to a cloud-based, partner-led model.

The move came as the tech giant cut roughly 9,100 jobs worldwide (or about 4 per cent of its workforce) in its largest layoff round since 2023.

Jawwad Rehman, former founding Country Manager of Microsoft Pakistan, urged the government and IT minister to engage with the tech giants with a bold KPI (Key Performance Indicators) driven plan.

He said the exit reflected the current business climate. “Even global giants like Microsoft find it unsustainable to stay,” he posted on LinkedIn.

Former Pakistan president Arif Alvi, in a post on X, also expressed concern over Microsoft shutting down operations.

“It is a troubling sign for our economic future,” he wrote.

He claimed Microsoft once considered Pakistan for expansion, but that instability led the company to choose Vietnam instead by late 2022.

“The opportunity was lost,” he wrote.

Jawwad explained that Microsoft didn't operate a full commercial base in Pakistan, relying instead on liaison offices focused on enterprise, education, and government clients.

Over recent years, much of that work had already shifted to local partners, while licensing and contracts were managed from its European hub in Ireland.