- Microsoft will end operations in Pakistan 25 years after it moved there
- Political and financial instability join tech barriers as motivations to pull out of Pakistan
- Neighboring India is set to receive $3 billion in Microsoft investments over the next two years
After reducing its headcount and operations to the bare minimum, Microsoft has now fully pulled out of Pakistan, 25 years after it opened up in the country.
The news was revealed via a LinkedIn post by Jawwad Rehman, the founding head of Microsoft Pakistan, without a formal public announcement from the company itself.
However the move was all but confirmed already, with full operations shut down in Pakistan and only a liaison office with around five employees remaining.
Microsoft shuts shop in Pakistan after 25 years
Although it’s believed service and customer agreements will remain unaffected through partners and regional offices, Microsoft ultimately had to pul out over economic instability, political volatility and tech barriers.
“This is more than a corporate exit. It’s a sobering signal of the environment our country has created.. one where even global giants like Microsoft find it unsustainable to stay,” Rehman wrote on LinkedIn.
Unstable currency, barriers to importing tech hardware, frequent political regime changes, unstable governance, internet shutdowns, content blocks and difficulty moving funds and tools across borders are among the long list of factors likely to have influenced Microsoft’s decision.
In a separate post, Rehman asked the Honourable Minister of IT and the Government of Pakistan to “actively engage Microsoft’s regional and global leadership” so that the company can maintain a presence within Pakistan.
Neighboring India has emerged as a key destination for tech investment in South Asia, with Microsoft announcing plans to invest $3 billion into the country over a two-year span earlier this year.
“India is rapidly becoming a leader in AI innovation, unlocking new opportunity across the country,” CEO Satya Nadella wrote.
The news comes just a few months after Microsoft also revealed plans to end its joint-venture operations in China.
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