Microsoft Closes Pakistan Office After 25 Years Amid Global Restructuring
Tech giant exits liaison operations amid global layoffs, raising concerns over Pakistan’s business climate and tech appeal.
Microsoft has announced its decision to shut down its limited operations in Pakistan, citing its ongoing global strategy to reduce workforce and streamline regional engagements. The move, confirmed on Friday, has been described by stakeholders as a worrisome indicator of Pakistan’s deteriorating business climate.
The tech giant’s decision comes amid a broader restructuring drive that has seen Microsoft scale back operations and workforce in several countries. However, its pullout from Pakistan—where it maintained a relatively small but strategic presence—has raised alarms in the local tech and business communities.
"This is not just about one company leaving. It reflects deeper concerns about ease of doing business, economic stability, and regulatory transparency," said an official from a local IT industry body, calling the development a “troubling sign.”
Microsoft has not provided detailed reasons specific to Pakistan but reiterated that its global changes are driven by shifting market demands and internal realignments.
Industry watchers fear the decision could dent investor confidence and affect Pakistan’s ambitions to become a regional IT hub. Calls are growing for the government to urgently address economic reforms, policy consistency, and infrastructure bottlenecks to retain foreign technology players and attract new investments. Officials have yet to comment formally on Microsoft’s exit or what support, if any, was extended to the company during its operational phase in the country.