Microsoft Exits Pakistan After 25 Years, Signaling Broader Economic Challenges

Microsoft has shuttered its Pakistan operations, ending a quarter-century presence in the country. The tech giant will now service the region through resellers and European hubs. Economic volatility, policy uncertainty, and failed investment plans under new leadership contributed to the withdrawal.

Jawwad Rehman, Microsoft Pakistan's founding country head, framed the exit as a bellwether for Pakistan's business climate. "This isn't just a corporate departure," he noted. "When even multinationals can't sustain operations, it reflects systemic challenges in the economic ecosystem."

The closure follows a stalled 2022 investment plan that collapsed after a government transition. Local partners had already assumed most operational responsibilities in recent years, allowing Microsoft to maintain market presence without direct oversight.