ISLAMABAD: Global tech giant Microsoft has closed its Pakistan operations after 25 years, according to Jawwad Rehman, its founding country head. Rehman, who brought Microsoft to Pakistan in 2000, shared the news in an emotional LinkedIn post.
“Today, I learned that Microsoft is officially closing its operations in Pakistan,” he wrote. “The last few remaining employees were formally informed—and just like that, an era ends.”
So far, Microsoft has made no official public statement on the shutdown.
Closure Tied to Global Layoffs and Local Instability
The decision aligns with Microsoft’s global plan to cut 9,000 jobs. However, industry insiders believe the Pakistan exit goes deeper.
Many experts view the move as a direct result of Pakistan’s worsening economic and political climate. A weakening currency, tech import restrictions, and constant political turbulence have made it increasingly difficult for multinationals to operate.
Trade Breakdown and Diplomatic Tensions Hurt Investment
Pakistan’s trade with India dropped sharply—from USD 3 billion in 2018 to just USD 1.2 billion in 2024. This drop has caused widespread disruption, particularly in critical imports like medicines, which are now routed through third countries.
These logistical challenges, combined with geopolitical tensions, have significantly damaged investor confidence and stifled business growth.
Former President Alvi Calls It a ‘Troubling Sign’
Reacting to the Microsoft Pakistan closure, former President Arif Alvi called it “a troubling sign for our economic future.” In a post on X (formerly Twitter), he warned of rising joblessness, declining purchasing power, and growing public frustration.
“Pakistan now spirals in a whirlpool of uncertainty,” he wrote. “Economic recovery in the ‘awami’ context feels like a distant and elusive dream.”
Unfulfilled Tech Promise: Alvi Recalls Gates Meeting
Alvi recalled a February 2022 meeting with Microsoft co-founder Bill Gates, during which they discussed potential investments in Pakistan. According to Alvi, Gates said he had spoken with then-Prime Minister Imran Khan and arranged a follow-up with Microsoft CEO Satya Nadella.
“A major announcement was expected within two months,” Alvi revealed. “But everything went downhill. Regime change upended those plans.”
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