Microsoft Shuts Down Its Operation in Pakistan: Shocking Reason Revealed

In a major development that has stirred debate within Pakistan’s tech and business circles, Microsoft has officially shut down its Pakistan office after operating in the country for 25 years. The closure comes as part of the company’s broader global restructuring plan, which includes laying off approximately 9,100 employees, nearly 4% of its global workforce, as it pivots to a cloud-based, partner-led model.

The tech behemoth never ran a full commercial operation in Pakistan, instead maintaining liaison offices that primarily focused on enterprise clients, educational partnerships, and government initiatives. However, much of that work had already been transitioned to local partners in recent years, with licensing and commercial contracts managed via Microsoft’s European headquarters in Ireland.

Pakistan Loses a Global Player

The news has been met with disappointment among former executives and industry stakeholders. Former President Dr. Arif Alvi called the exit a “troubling sign” on social media, revealing that Pakistan was once under consideration for a regional expansion, only to be overlooked in favor of Vietnam due to political and economic instability by late 2022. “The opportunity was lost,” he lamented.

Jawwad Rehman, Microsoft Pakistan’s first country manager, echoed these sentiments. “Even global giants like Microsoft find it unsustainable to stay,” he shared on LinkedIn, indicating the move was more about Pakistan’s unfavorable business climate than just internal corporate decisions.

Minimal Revenue, Maximum Impact

According to tech entrepreneur Habibullah Khan, Microsoft’s revenue from Pakistan was estimated at just $50 million, a minuscule 0.02% of its global earnings. “Their relationship with Pakistan was very tenuous,” he stated, adding that local staff had already been significantly reduced.

While Microsoft will continue serving Pakistani clients remotely through regional teams and third-party partners, the physical exit reflects a broader trend: global firms tightening international footprints to focus on profitability, efficiency, and scalability.

The move is also likely to impact perceptions of Pakistan’s viability as a tech hub, at a time when the country is already struggling to attract and retain foreign investment.

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