In a major development, Microsoft has officially closed its operations in Pakistan after over two decades of presence in the country. The news was confirmed on July 4, 2025, as the company shut down its local office located in Islamabad’s Evacuee Trust Complex.
The closure marks the end of a 25-year chapter for Microsoft Pakistan, which began operations in the early 2000s. According to reports, the decision was made by the company’s regional management, citing strategic restructuring and shifting priorities across markets.
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While Microsoft has not issued a detailed public statement, sources indicate that economic instability, currency challenges, and inconsistent digital policies may have contributed to the decision. The local team, which handled partnerships, educational programs, and government-level digital transformation projects, has reportedly been dissolved.
Despite the closure of its physical office. Microsoft’s services and products, like Windows, Office, Azure, and LinkedIn, will remain available to Pakistani users. However, local enterprise clients may now face challenges in receiving direct regional support.
The departure of such a major global tech player is being seen as a setback for Pakistan’s tech ecosystem. Experts believe this could impact foreign investor confidence. And slow down ongoing digital transformation initiatives across both the public and private sectors.
Industry professionals and IT community members have expressed concern and disappointment on social media. Urging the government to address the underlying issues that push international tech giants to exit.
Microsoft’s exit serves as a wake-up call for policymakers to stabilize the economic environment. And make Pakistan a viable long-term hub for global tech investment.
