Microsoft has officially closed its local office in Pakistan after a quarter-century, transitioning to a partner-led model while retaining only a five-person liaison team.
founded in 2000, Microsoft Pakistan played a pivotal role in introducing Windows, Office, and Azure to local businesses and academia. Over the years, it supported developer communities and contributed to IT education and skill-building initiatives. But facing economic volatility and diminishing returns—and in sync with global cost-cutting moves—the company concluded it was time to exit.
Jawwad Rehman, Microsoft Pakistan’s founding country manager, described the departure on LinkedIn as “more than a corporate exit—it’s a sobering signal” for the nation’s economic and policy environment. Other analysts echoed concerns over business unpredictability, regulatory lag, and rising operational costs.
Despite the office closure, Microsoft says services will continue via certified local partners and neighboring regional hubs, ensuring access to enterprise support and licensing. The company emphasized that customer agreements remain unaffected.
Only around five staff have been directly impacted, with broader layoffs tied to Microsoft’s global restructuring—nearly 9,000 positions globally have been cut.
This shift reflects a broader strategic realignment toward SaaS and AI-driven cloud services—a trend Microsoft has been pushing in other markets as well.
For Pakistan’s IT ecosystem, the move is bittersweet: global tech giants remain accessible, but local presence matters for market development, government engagement, and capacity-building. The real test will be whether partner-led models can deliver the same impact.
