In a major development that underscores the growing challenges facing Pakistan’s tech ecosystem, Microsoft has officially closed its operations in the country, bringing an end to a 25-year presence that once symbolized global confidence in Pakistan’s digital future.

Sources confirmed that the last remaining employees were formally notified recently that the tech giant was initiating a full wind-down of its operations in Pakistan. The closure marks a symbolic and strategic retreat by one of the world’s leading technology firms amid rising economic and political instability.

Jawwad Rehman, Microsoft Pakistan’s founding Country Manager who launched the company’s operations in June 2000, called the exit “the end of an era.” Rehman, who led Microsoft in Pakistan for seven years, reflected on the early years of optimism, innovation, and opportunity.

“It wasn’t just a job—it was a calling,” he said. “Those years were about uplifting people, forming partnerships, earning trust, and creating opportunity for a generation of Pakistani youth.”

During Microsoft’s formative years in Pakistan, the company undertook several high-impact initiatives. Rehman recalled key milestones, including facilitating a historic phone call between Microsoft co-founder Bill Gates and then-President Pervez Musharraf, channeling Gates Foundation funds toward maternal and infant healthcare, and building hundreds of computer labs in underserved regions of the country. One of the most memorable achievements was connecting the late tech prodigy Arfa Karim with Bill Gates—an encounter that brought her global attention and cemented her legacy in Pakistan’s tech history.

Microsoft’s departure comes as Pakistan faces deepening economic uncertainty, an unresolved political crisis, and a widening digital divide. Once viewed as a promising hub for technology investment, the country has seen an exodus or retrenchment of several international companies in recent years. Microsoft itself was reportedly considering expansion in Pakistan as recently as 2022 but ultimately pivoted to Vietnam following escalating political unrest.

Industry analysts view Microsoft’s exit as both a setback and a wake-up call. “This is a loss not just of a company, but of potential,” said one technology expert. “It signals to other investors that even the biggest names in tech see Pakistan as too volatile to sustain long-term operations.”