Rehman wrote, “Today, I learned that Microsoft is officially closing its operations in Pakistan… an era ends.”
Responding to Dawn, a Microsoft spokesperson confirmed the closure and said the company will continue to serve customers through its regional offices and strong partner network, following a model it already uses in several countries.
Shift to cloud, AI and global restructuring cited
According to Dawn, Microsoft’s decision is part of its global restructuring efforts and its increasing focus on cloud computing, AI, and Software-as-a-Service (SaaS). This week, Microsoft also announced nearly 9,000 global job cuts, representing 4% of its workforce, following earlier layoffs in May.
Not a full exit, says Ministry of IT
Pakistan’s Ministry of IT and Telecommunications clarified that this should not be interpreted as Microsoft exiting Pakistan entirely. Instead, it is a strategic move towards a cloud-based, partner-led model, consistent with international tech trends.
Experts say closure reflects global SaaS shift
Tech analyst Habibullah Khan told Dawn that as companies move away from on-premise models to cloud and SaaS, maintaining physical offices in smaller markets becomes less necessary. He stressed this is part of a global trend and not a reflection of Pakistan’s market potential.
Khan also noted that while other multinationals like Careem have scaled back operations in Pakistan, Microsoft’s move is more about cost-efficiency and strategic realignment.
Former Microsoft head: ‘This is more than a corporate exit’
Jawad Rehman, in his post, expressed disappointment, stating:
“This is more than a corporate exit. It’s a sobering signal of the environment our country has created—one where even global giants like Microsoft find it unsustainable to stay.”
He added that the strong foundation Microsoft had laid in Pakistan was not effectively built upon by subsequent leadership.
Former President Arif Alvi calls it a ‘troubling sign’
Former President Dr. Arif Alvi also weighed in on X (formerly Twitter), calling the shutdown a “troubling sign for our economic future.”
Multinationals continue to scale back in Pakistan
In recent years, several multinational companies across different sectors have either shut down their operations in Pakistan or sold them to local entities. Just last month, Careem announced it would discontinue its ride-hailing services in Pakistan starting July 18.
Careem’s exit follows Uber’s earlier withdrawal
Mudassir Sheikha, CEO and co-founder of Careem, posted the update on LinkedIn, calling it an “incredibly difficult decision.”
“It is with a heavy heart that I share this update: Careem will suspend its ride-hailing service in Pakistan on July 18,” he wrote.
Careem Rides had entered the Pakistani market after Uber withdrew its services in 2015, filling a major gap in the ride-hailing space at the time.