Tech giant Microsoft has announced to shut down its office in Pakistan and laid off five employees, marking a significant development in the country’s tech sector, as reported by Dawn. The move, which sparked speculation on social media, was first brought to public attention by a LinkedIn post from Jawad Rehman, the former head of Microsoft Pakistan. Citing insider information, he claimed the tech giant had “officially closed its operations” in the country.
Microsoft, while closing its office in Pakistan after 25 years, cited global restructuring and a shift to a cloud-based, partner-led model. The move came as the tech giant cut roughly 9,100 jobs worldwide (or about 4 per cent of its workforce) in its largest layoff round since 2023. Jawwad Rehman, former founding Country Manager of Microsoft Pakistan, urged the government and IT minister to engage with the tech giants with a bold KPI (Key Performance Indicators) driven plan.
He said the exit reflected the current business climate. Even global giants like Microsoft find it unsustainable to stay, he posted on LinkedIn. Former Pakistan president Arif Alvi, in a post on X, also expressed concern over Microsoft shutting down operations. It is a troubling sign for our economic future, he wrote. He claimed Microsoft once considered Pakistan for expansion, but that instability led the company to choose Vietnam instead by late 2022.
Jawwad explained that Microsoft didn’t operate a full commercial base in Pakistan, relying instead on liaison offices focused on enterprise, education, and government clients. Over recent years, much of that work had already shifted to local partners, while licensing and contracts were managed from its European hub in Ireland.
