Microsoft has closed its operations in Pakistan after 25 years, citing global restructuring and a move toward a partner-led, cloud-first business model. The decision raises concerns about Pakistan’s business climate and its ability to retain global tech firms.

Key Points:

• Microsoft officially ended its Pakistan operations in July 2025, after first entering the country in 2000, retaining only a liaison presence for regional support.
• The closure is part of Microsoft’s global workforce restructuring, involving over 9,000 job cuts and operational shifts toward cloud services and licensing consolidation.
• Former Microsoft Pakistan country head Jawwad Rehman termed it “more than a corporate exit” and urged Pakistan to adopt KPI-based governance to retain investors.
• Former President Arif Alvi expressed concern, noting Pakistan lost out to Vietnam in 2022 for Microsoft’s regional investment due to political and economic instability.
• Experts attribute Microsoft’s exit to policy uncertainty, inconsistent taxation, infrastructure gaps, and challenges in ease of doing business in Pakistan.