Microsoft Pakistan Closes After 25 Years
The government's plans to transform Islamabad into a digitally smart city and train youth in modern IT skills are expected to play a crucial role in promoting the IT industry and digital transformation in Pakistan, despite the challenges posed by Microsoft's exit.

Microsoft has ended its operations in Pakistan after a 25-year presence, marking the close of a significant chapter for the tech giant in the country, with the last remaining employees informed of the shutdown, led by founding Country Manager Jawwad Rehman.
During its time in Pakistan, Microsoft played a crucial role in the country's digital transformation, building hundreds of computer labs in remote areas and helping expand digital infrastructure. The company's exit comes amid economic uncertainty and a growing digital divide in Pakistan, with the country facing challenges in attracting foreign investment in the tech sector. Microsoft had previously considered expanding in Pakistan in 2022 but shifted plans to Vietnam due to political chaos.
The exit is seen as a blow to Pakistan's efforts to boost its IT industry, which the government is trying to promote through various initiatives. Federal Minister for IT and Telecommunication, Shaza Fatima Khawaja, announced plans to transform Islamabad into a digitally smart city, with the aim of improving education, healthcare, and connectivity. The government has already funded fibre connectivity for all public schools, basic health units, and health sectors in the federal capital.
The government also aims to train 500,000 youth in modern IT skills with the help of the private sector, with Google, Huawei, and Microsoft each committing to train 200,000 students. Additionally, plans are underway to introduce AI and emerging technologies education starting from kindergarten up to grade six, and to replicate this model in Gilgit-Baltistan and other remote areas.
The closure of Microsoft Pakistan's operations marks the end of an era, but the government's initiatives to promote the IT industry and digital transformation are expected to continue, with a focus on improving education, healthcare, and connectivity in the country.