ISLAMABAD — Pakistan’s Ministry of IT and Telecom has affirmed its intent to actively engage with Microsoft’s regional and global leadership to ensure that any structural changes by the tech giant strengthen, rather than weaken, its long-term commitment to Pakistani customers, developers, and channel partners.
This statement follows reports that Microsoft has decided to exit Pakistan after 25 years of operation, sparking concerns over the country’s business climate and the future of its technology sector.
The Ministry underscored the strategic importance of having global technology leaders active in Pakistan. It noted the global industry-wide shift from on-premise software sales to Software-as-a-Service (SaaS) subscription models, which is reshaping how tech companies organize their international presence. Microsoft has moved licensing and commercial contract management for Pakistan to its European hub in Ireland, while local day-to-day service delivery has been managed by certified partners.
Microsoft is reportedly reviewing the future of its liaison office in Pakistan as part of a broader workforce optimization initiative. The Ministry clarified that this move reflects a long-anticipated strategy to consolidate direct employee presence and transition toward a partner-led, cloud-based service model, rather than a complete withdrawal from the Pakistani market.
Former Microsoft Pakistan manager Jawwad Rehman, who led the company’s local operations for many years, described the exit as “the end of an era,” marking the conclusion of a chapter that began in 2000 when Microsoft first established its presence in Pakistan. Rehman highlighted milestones such as building a high-performing local team, strengthening customer relationships, and contributing to Pakistan’s early digital transformation.
Rehman expressed concern about the wider implications of Microsoft’s departure, citing worsening economic instability, regulatory uncertainty, and declining investor confidence as critical challenges facing Pakistan’s business environment.
The Ministry of IT and Telecom continues to emphasize the importance of reforms to retain and attract technology investments that will support Pakistan’s digital growth.
