Microsoft has shut down operations in Pakistan, marking the end of its 25-year existence in South Asian countries.
The Redmond-based company told TechCrunch on Friday that it had changed Pakistan’s operating model and would now serve its customers through resellers and “other closely located Microsoft offices.”
“Our customer agreements and services will not be affected by this change,” a Microsoft spokesperson said in an email statement.
“We have successfully followed this model in many other countries around the world. Our customers will remain our number one priority and we can expect the same high level of service in the future,” the spokesperson added.
According to a source who spoke with TechCrunch, the decision will affect five Microsoft employees in Pakistan. They add that Microsoft did not have engineering resources in Pakistan, unlike India and other growing markets, and sells Azure and Office products domestically to its employees.
The closure comes amid a wider corporate restructuring. Pakistan’s Ministry of Information and Broadcasting explained Redmond’s exit “As part of a wider workforce optimization program.” Earlier this week, Reduced the workforce by 4% or around 9,000 roles Worldwide.
To prepare for this transition, Microsoft has shifted Pakistan’s license and commercial contract management to Ireland’s European hub over the past few years, with certified local partners handling daily service delivery.
“We will continue to ensure that Microsoft’s regional and global leadership will continue to insure that rather than reduce Microsoft’s long-term commitment to Pakistani customers, developers and channel partners, we will strengthen structural change,” the ministry said.
Microsoft’s former executive and first lead at Pakistan’s Jowad Lehman It has been reported The company was left on Thursday in a LinkedIn post.
“This is more than an exit for businesses. It’s a calm signal of the environment our country has created. Even global giants like Microsoft feel it’s unsustainable to stay, and it reflects what was done with the strong foundations left behind by the team and Microsoft regional management that followed,” Rehman posted.
The exit comes days after Pakistan’s federal government announced it Plans to provide IT certification From high-tech companies including Google and Microsoft to 500,000 young people. This move is in a particularly stark contrast to Google. Investment of $10.5 million Last year, the country’s public education sector was in Pakistan. A market that produces 500,000 Chrome Books By 2026.
Microsoft’s exit reflects the broader challenges in Pakistan’s technology sector. Unlike India and other regional markets, Pakistan has not established itself as a major engineering outsourcing destination for western tech giants. Instead, the country’s high-tech ecosystem is dominated by two major companies, such as local companies and Chinese companies, who have developed their own engineering capabilities. Huaweigained a large market share by providing enterprise-grade infrastructure to telecommunications companies. bank.
Pakistan’s Ministry of Information and Broadcasting did not respond to requests for comment.
