Microsoft has closed its Pakistan office, marking the end of its physical presence in the country after 25 years.

 

 

As per the details, the decision is part of a larger global restructuring initiative as the company reduces its workforce by over 9,000 positions globally and focuses more intensely on a cloud-based Software-as-a-Service (SaaS) model.

 

 

Although Microsoft did not have a complete commercial operation in Pakistan, it operated liaison offices that catered to enterprise, education and government clients. Much of this work had already been transitioning to local partners and regional centers, especially in Ireland. The local team had reportedly diminished considerably in recent years.

 

 

In response to media inquiries, a Microsoft representative said that the company would continue to support Pakistani customers through regional offices and a robust partner network. The representative also noted that this model was already implemented in various other countries.

 

 

The announcement also elicited responses from former officials and industry analysts. Former president Dr Arif Alvi described it as a "worrying sign," indicating that the company had previously contemplated expanding its operations in Pakistan but opted for Vietnam instead, citing political and economic unpredictability. “The opportunity was lost,” he said on X.

 

 

Jawwad Rehman, the first country manager for Microsoft Pakistan, also acknowledged the decision in a LinkedIn update. He remarked that the move was indicative of the current business environment where even prominent global firms struggled to maintain operations.

 

 

Tech entrepreneur Habibullah Khan pointed out that Microsoft's revenue from Pakistan was estimated at approximately $50 million — less than 0.02% of its total global earnings. He contended that the company's relationship with the country was never deeply established and characterised the exit as part of a broader trend towards cloud-first services.

 

 

The Ministry of IT and Telecommunications recognised the development but clarified that Microsoft’s action did not equate to a complete withdrawal. Instead, it indicated a transition to a service delivery model that did not necessitate a physical office. The ministry connected this to the global shift away from capital-intensive and on-premise software installations to cloud-based subscription solutions.

 

 

Analysts also opined that Microsoft’s transition was more influenced by global market trends rather than local market conditions.