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Microsoft Ends Direct Pakistan Operations After 25 Years Amid Global Restructuring

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Updated Jul 5, 2025, 09:45 PM

Microsoft has shut its direct operations in Pakistan, closing the Karachi liaison office that has represented the company in the country since 2000. A spokesperson told TechCrunch the software maker will now serve Pakistani customers through authorised resellers and “other closely located Microsoft offices,” a model it already uses in several smaller markets. Roughly five local employees were informed of the move this week, capping a gradual downsizing that left only a small sales team in place.

The decision forms part of Microsoft’s broader restructuring, which is eliminating about 9,100 jobs worldwide—around 4 % of its workforce—and shifting more resources to cloud services. Licensing and commercial-contract management for Pakistan had already been transferred to Microsoft’s European hub in Ireland over recent years, limiting the operational impact of the latest step.

Pakistan’s Ministry of Information Technology said the closure should be seen as a transition to a partner-led, cloud-first model rather than a retreat from the market, and pledged to engage with Microsoft’s regional and global leadership to preserve support for local customers, developers and partners. Existing service agreements are expected to continue uninterrupted.

Even so, former Microsoft Pakistan country manager Jawwad Rehman and former President Arif Alvi described the withdrawal as a warning signal about Pakistan’s business climate, citing political uncertainty and regulatory hurdles that have already prompted other multinationals to scale back. Analysts said the loss of a marquee global brand, though small in headcount terms, could weigh on investor sentiment toward the country’s nascent tech ecosystem.

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Sources

arabnews.pk(2)timesnownews.com(2)swarajyamag.com(2)techcrunch.com(2)

Arab News Pakistan

@arabnewspk

Microsoft shifting to partner-led delivery model, not retreating from Pakistan — IT ministry

TIMES NOW

@TimesNow

Microsoft Exits Pakistan After 25 Years: Why This Corporate Departure Signals Deeper Challenges For Neighbour? #TNCards #Microsoft

Anadolu English

@anadoluagency

Microsoft is shutting down its direct operations in Pakistan, ending a 25-year presence in the country ❗️ Industry experts warned the closure could negatively impact Microsoft employees in Pakistan