By Manik Aftab ⏐ 1 week ago ⏐ Newspaper Icon Newspaper Icon 4 min read
Microsoft Reportedly Closing Operations In Pakistan After 25 Years

In a development that has stirred the local tech community, Microsoft is reportedly closing its operations in Pakistan after a 25-year run. The news surfaced through a heartfelt LinkedIn post by Jawwad Rehman, the founding Country Manager of Microsoft Pakistan, marking the end of what many view as a pivotal chapter in the nation’s technology landscape.

According to Rehman, the last remaining employees at Microsoft Pakistan were formally informed of the closure, signaling an end to a journey that began in June 2000. “Just like that, an era ends,” he wrote, reflecting on his own role in launching and leading the company’s operations in Pakistan.

Rehman shared vivid memories of building Microsoft Pakistan from the ground up—forming a dynamic team, engaging customers, and nurturing partnerships that helped shape the country’s tech ecosystem. “It wasn’t just a job.. it was a calling,” he noted, emphasizing how the experience profoundly impacted his life and career.

Microsoft Reportedly Closing Operations In Pakistan After 25 Years

Highlights of his tenure included orchestrating Bill Gates’ first official conversation with then-President Pervez Musharraf, securing multi-million dollar Gates Foundation grants aimed at reducing infant and maternal mortality, establishing hundreds of computer labs in remote areas, and famously introducing young tech prodigy Arfa Karim to Bill Gates.

Microsoft’s reportedly closure of operations in Pakistan also draws attention to broader concerns. Rehman pointed to the country’s current business climate as a reason global companies might find it increasingly challenging to sustain local operations. “This is more than a corporate exit. It’s a sobering signal of the environment our country has created.. one where even global giants like Microsoft find it unsustainable to stay,” he wrote.

He further questioned what changed over the years, asking what happened to the leadership, vision, and values that once made Pakistan an attractive market for multinational tech firms. While acknowledging that circumstances evolve, he expressed gratitude for the impact and opportunities created during Microsoft Pakistan’s golden era.

How Pakistanis Are Responding to Microsoft’s Exit

The reaction to Microsoft’s sudden exit from Pakistan has been nothing short of overwhelming, with citizens — including prominent personalities — expressing concern over the move. Former President Arif Alvi called the decision “a troubling sign” for the country’s economic future.

Here’s how others are reacting:

As Microsoft reportedly closes operations in Pakistan, it not only marks the departure of a global tech leader but also prompts reflection on the economic and regulatory environment necessary to attract and retain foreign investment. For many in the industry, this moment underscores the need for renewed commitment to fostering a sustainable ecosystem that empowers future generations.

Ministry of  IT Reacts to The Microsoft Exit News

Conversely, the government has pointed to structural factors behind Microsoft’s decision to exit Pakistan. In a press release, the Ministry of Information and Technology issued an official statement.”

“The global pivot from on-premise software (transactional deals) to Software-as-a-Service (SaaS) (recurring revenue) continues to reshape how technology firms structure their international operations. Microsoft is no exception. Over the past few years, the company has shifted licensing and commercial-contract management for Pakistan to its European hub in Ireland, while day-to-day service delivery here has been handled entirely by its certified local partners.”

 

Against that backdrop, we understand Microsoft is now reviewing the future of its liaison office in Pakistan as part of a wider workforce-optimisation programme. This would reflect a long-signalled strategy, consolidating direct headcount and moving toward a partner-led, cloud-based delivery model, rather than a retreat from the Pakistani market.”

 

Pakistan’s Ministry of IT & Telecom recognises the strategic value of having leading global technology providers active in the country. We will continue to engage Microsoft’s regional and global leadership to ensure that any structural changes strengthen, rather than diminish, Microsoft’s long-term commitment to Pakistani customers, developers and channel partners.”
Note: This story is continuously developing, and we will provide updates as soon as new information comes to light. Stay tuned for the latest insights and key developments.

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