Microsoft Exits Pakistan After 26 Years, Major Blow To Tech Ecosystem

After working in Pakistan for 26 years, tech giant Microsoft has decided to close its direct operations in the country. The company told TechCrunch that it is moving to a new model, where it will serve Pakistani customers through regional offices and authorized resellers, instead of running its own office in Pakistan.

Microsoft made it clear that this change won’t affect current services or customer agreements. This service model is already used in many other countries, and users have been assured there will be no drop in service quality.

No Engineering Base in Pakistan

According to reports, only five employees were affected by the shutdown in Pakistan. These employees were mainly responsible for selling products like Microsoft Azure and Office. Unlike India, Microsoft never set up an engineering base in Pakistan, which limited the role of the local team.

Part of Microsoft’s Global Restructuring

This exit is not an isolated move. Microsoft is currently undergoing a global restructuring. Just a few days before this announcement, the company cut around 9,000 jobs, nearly 4 percent of its workforce.

Pakistan’s Ministry of Information sees this as part of Microsoft’s workforce optimization strategy. In recent years, Microsoft had already shifted important tasks like licensing and contract management for Pakistan to its European center in Ireland.

A Wake-Up Call for Pakistan’s Business Climate

Jawwad Rehman, Microsoft’s former lead in Pakistan, expressed his disappointment on LinkedIn. He said this exit is not just a business move, but a serious warning about the country’s business environment. Rehman believes Pakistan failed to build on the foundation Microsoft had laid years ago.

Timing of Exit Raises Eyebrows

What makes the exit even more surprising is its timing. Microsoft left just days after the Pakistan government announced a plan to offer IT certifications to 500,000 youth, a project Microsoft was part of.

At the same time, Google is investing in Pakistan’s education sector and exploring Chromebook production in the country. Microsoft’s exit has raised serious questions about Pakistan’s ability to attract and retain global tech companies.