Microsoft Shuts Down Pakistan Operations After 25 Years
Microsoft has closed its Pakistan operations, ending a 25-year presence that began in 2000 under the leadership of company co-founder Bill Gates. The move, confirmed by former Microsoft Pakistan Country Manager Jawwad Rehman, reflects growing concerns over Pakistan’s economic instability, shifting regulatory policies, and declining investor confidence.
Rehman, who helped launch the company’s presence in the country, wrote on LinkedIn, “We built more than a successful business. … We built a legacy.” He added, “But today’s news forces reflection. This is more than a corporate exit. It’s a sobering signal about the environment our country has created. One where even global giants like Microsoft finds it unsustainable to stay.”
The decision marks the “end of an era,” according to Rehman, who warned that the exit should prompt national introspection. “What changed? What was lost? What happened to the values, leadership, and vision that once made it all possible?”
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Microsoft began operations in Pakistan during a period of optimism about the country’s digital future. Over the past two decades, it introduced core software tools such as Windows, Microsoft Office, and Azure cloud services to Pakistani businesses, government agencies, and consumers. It also helped modernize public services through e-governance partnerships and supported digital literacy by establishing computer labs in remote areas and training millions of young people.
The company worked with local startups through mentorship and global accelerator programs like Microsoft for Startups and BizSpark. It also partnered with schools and universities to offer training and software discounts through initiatives like the Microsoft Imagine Academy.
While the company’s footprint had already shrunk in recent years—moving toward a partner-led model with support functions based in Europe—its full departure is being viewed as a blow to Pakistan’s struggling tech sector. Microsoft’s exit has reignited debate about the country’s investment climate, particularly its ability to attract and retain multinational corporations.
The decision follows a broader trend of foreign companies scaling back their presence in Pakistan, as the country grapples with low foreign reserves, an unstable rupee, and a lack of clear economic policy. As of June 2025, Pakistan’s foreign currency reserves hovered around $11.5 billion, and investor sentiment remains shaky.
Microsoft’s withdrawal sends a troubling message to other global firms weighing long-term commitments in Pakistan’s volatile business landscape.
