Microsoft has officially ended its operations in Pakistan after 25 years, according to media reports. The move follows recent global layoffs by the tech giant, which included nearly 9,100 employees—about 4% of its workforce. Although Microsoft never had a full corporate office in Pakistan, it maintained liaison offices that served enterprise, education, and government sectors.
Former President Arif Alvi called the decision a troubling sign for Pakistan’s future. He claimed Microsoft once considered Pakistan for major investment plans. However, political instability and regime changes shifted Microsoft’s focus to Vietnam in 2022. Alvi said the loss of this opportunity reflects a growing trend of global tech firms pulling away from Pakistan.
Microsoft’s decision to shut down operations in Pakistan is a troubling sign for our economic future. I vividly recall February 2022, when Bill Gates visited my office. On behalf of the people of Pakistan, I had the honor of conferring the Hilal-e-Imtiaz on him for his remarkable… pic.twitter.com/T4SMkp6Mn0
— Dr. Arif Alvi (@ArifAlvi) July 3, 2025
Microsoft Pakistan’s former country manager, Jawwad Rehman, described the exit as more than just a business decision. He said it signals an environment where even major global players find it hard to operate. Other tech experts noted that Microsoft had already reduced its workforce in Pakistan and handled business through Turkey and Ireland.
The IT Ministry responded by clarifying that Microsoft’s exit aligns with its global shift to a partner-led, cloud-first strategy. It said the company had moved software licensing and services to its European hub in Ireland over recent years. The ministry added that Microsoft is now reviewing its local liaison office as part of workforce restructuring.
Despite the shutdown, officials stressed that this is not a full retreat from the Pakistani market. The government says it will continue working with Microsoft’s global teams to keep the company engaged. Still, the development has raised concerns about job loss, shrinking tech space, and Pakistan’s ability to attract foreign investment in a competitive global market.