Microsoft Pulls Plug On Pakistan Office In Major Blow To Country’s Struggling IT Ecosystem

In a major jolt to Pakistan’s struggling IT sector, Microsoft has pulled the plug on its local operations after 25 years, citing global restructuring, news agency PTI reported.

As part of its global workforce reduction strategy, the tech giant will now serve Pakistani clients remotely through its regional hubs and authorised resellers, rather than maintaining a direct presence on the ground.

The Pakistan office is part of Microsoft’s pivot to a cloud-first, partner-led global model — a shift that has seen it scale down several regional setups, including Pakistan.

This development comes amid Microsoft’s global layoff spree, where nearly 9,100 roles — or 4 per cent of its workforce — are being axed in what’s now its biggest job cut round since 2023.

Microsoft’s move, while impacting just five local employees, has rattled Pakistan’s business and tech circles. These staffers were primarily engaged in enterprise sales for Microsoft products like Azure and Office, India Today reported.

Unlike in India, the company never built a development or engineering hub in Pakistan, operating only through sales and liaison functions.

Still, the exit is viewed less as a loss of headcount and more as a symbolic retreat — raising fresh concerns about Pakistan’s attractiveness to global tech firms.

Former Microsoft Pakistan country head Jawwad Rehman urged the government to take proactive steps to retain and attract global tech players.

Calling it a reflection of the deteriorating business environment in Pakistan, Rehman posted on LinkedIn, “Even global giants like Microsoft find it unsustainable to stay.”

Former President Arif Alvi also weighed in on X, expressing concern over Microsoft’s retreat from Pakistan.

“It is a troubling sign for our economic future,” Alvi posted, joining the growing chorus of alarmed voices.

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

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