Microsoft shut down in Pakistan on July 3, 2025, ending its 25-year presence that started in June 2000. The company closed its local office, laying off the last five employees. This means Microsoft now has no physical office in Pakistan, with operations shifting entirely to regional hubs and partner firms.
The decision behind Microsoft shut down in Pakistan is part of the company’s global business restructuring and cost-cutting strategy aimed at improving efficiency. However, industry sources point to additional factors, including regulatory hurdles, economic challenges, and unclear business policies in Pakistan, which may have influenced this exit.
A Microsoft spokesperson confirmed that customer support agreements in Pakistan will remain in place. Microsoft products and services will continue to be available through regional offices and certified local partners. Businesses and government clients will now rely on remote support, mainly from hubs in Ireland or Turkey, with partner-led service delivery models.
Former Microsoft Pakistan Country Manager Jawwad Rehman described the closure as the end of an era for the country’s digital partnership with the tech giant. Former President Arif Alvi called the development a troubling sign for Pakistan’s ambitions to attract foreign tech investment.
The news of Microsoft leaving Pakistan is seen as a signal to policymakers and investors about the need for regulatory reforms, clear business policies, and stronger digital infrastructure to attract and retain global technology firms.
The exit of Microsoft highlights challenges for the tech industry in Pakistan. Businesses can continue using Microsoft services without disruption, though they may face longer response times due to the shift to remote support. The development has triggered renewed calls for economic reforms to ensure a stable environment for foreign technology companies.
