After a 25-year presence in Pakistan, global technology giant Microsoft has shut down its operations in the country. The decision follows the company’s global workforce reduction of 9,000 employees and marks the end of an era for one of the world’s most influential tech firms in Pakistan.

Jawwad Rehman, who established and led Microsoft’s Pakistan unit, confirmed the development through a LinkedIn post and wrote, “Today, I learned that Microsoft is officially closing its operations in Pakistan. The last few remaining employees were formally informed and just like that, an era ends…”

‘More than a corporate exit’

Rehman reflected on the broader implications of the closure, describing it as “more than a corporate exit”. He pointed to Pakistan’s business environment as a key factor, stating, “It’s a sobering signal of the environment our country has created…one where even global giants like Microsoft find it unsustainable to stay.”

In recent years, Microsoft shifted its licensing and commercial contract operations for Pakistan to its European hub in Ireland. According to reports, local service delivery has been managed entirely by certified Pakistani partners, a model expected to continue despite the office closure.

Pakistani govt downplays the exit

However, Pakistan’s Ministry of Information Technology and Telecommunication downplayed the significance of Microsoft’s move. “Pakistan’s Ministry of IT & Telecom recognises the strategic value of having leading global technology providers active in the country,” read an official press release.

In the statement, the ministry further said that the closure should not be viewed as an exit from the Pakistani market. “This is part of Microsoft’s long-term global strategy to consolidate operations and promote a partner-led, cloud-based service model,” it said.

The Pakistani government reiterated its commitment to retaining global tech firms in Pakistan and leveraging their presence to strengthen the local ecosystem of developers, businesses and consumers.