Latest news with #JawwadRehman
Time of India
2 days ago
- Business
- Time of India
Why is Microsoft pulling out of Pakistan after 25 years: Reports
(Image via Getty Images) Microsoft has made the decision to shut down operations in Pakistan. It would end the 25-year-old presence of the company in Pakistan. The move comes as a surprise to Pakistan's local IT sector, where Microsoft, the tech giant played a key role in digital transformation. While no official statement has been released yet, industry experts are pointing to economic challenges and the shifting business strategies as possible reasons for the exit. Let us deep dive into these reasons. Why is Microsoft leaving Pakistan? Microsoft's exit follows some growing difficulties within Pakistan's business environment. The company that entered its market in 2000 kept its focus on the primary sale of office products and Azure, but had no engineering teams locally. As per reports, with just five local employees affected, the decision seems to be a part of a broad restructuring— Microsoft recently cut down 9,000 global jobs. Jawwad Rehman, a former Microsoft Executive, even hinted at some operational challenges through his LinkedIn post. He emphasized the struggles faced by Pakistani businesses. The economic instability of the country, including currency devaluation and the declining foreign investment, further and quite likely influenced this move. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Nhà tiền chế 2025: Lựa chọn nhà ở giá cả phải chăng (Xem ngay) Nomad's Notebook Nhấp vào đây Undo Microsoft would now be serving the company's Pakistani clients via regional offices and resellers. How does Microsoft's exit impact the Pakistani tech sector? The departure of Microsoft adds to concerns over Pakistan's ability to retain multinational companies. Over 55 startups shut down or have pivoted since 2021. Tech funding, too, dropped by 88% between 2022 and 2024. There's poor internet infrastructure, frequent power outages, and even a worsening business climate, which further pushed 1000s of tech professionals to seek better opportunities abroad. Despite it all, some companies, including Google, are investing in Pakistan. They have reportedly pledged $10.5 million for education and local Chromebook production. Such a contrast here highlights differing corporate strategies, with some of the firsts considering it as potential, while others are retreating. As for Pakistan, retaining tech players will now be crucial to stabilizing the struggling digital economy. What is next for Pakistan's IT industry? The Pakistani government plans to offer IT certifications from Google and Microsoft to 500,000 youth, even when Microsoft has scaled back. The experts warn that without addressing some core issues here, like policy stability and those infrastructural gaps, more issues can follow. Even widening gaps, with India, where Microsoft does have strong operations, underscore the urgency for reforms. As of now, Pakistani businesses that are reliant on Microsoft products will not face any disruptions as services will continue via partners. But the exit of Microsoft serves as a wake-up call for the policymakers to revive investor confidence before any more damage is done. For real-time updates, scores, and highlights, follow our live coverage of the India vs England Test match here. Game On Season 1 continues with Mirabai Chanu's inspiring story. Watch Episode 2 here.
Mint
2 days ago
- Business
- Mint
Microsoft shuts down operations in Pakistan after 25 years, ex-president calls it a ‘troubling sign for country'
Microsoft has officially shut its operation in Pakistan after 25 years, according to the CEO who launched the tech giant's presence in the country in 2000. The company, which entered Pakistan on March 7, 2000, cited global restructuring and a shift to a cloud-based, partner-led model as reasons behind the closure. While Microsoft has not yet issued any formal announcement, leaders attribute the company's exit to Pakistan's economic turmoil and shifting political landscape. The decision comes as the tech giant cut roughly 9,100 jobs worldwide in its largest layoff round since 2023. The company's founding country head in Pakistan, Jawwad Rehman announced the change on LinkedIn by saying, 'Today, I learned that Microsoft is officially closing its operations in Pakistan. The last few remaining employees were formally informed and just like that, an era ends.' Microsoft already clarified that the decision won't affect existing services or customer agreements as it will keep serving Pakistani customers through regional offices and authorized resellers instead of running a direct office. This new model is being used in many countries, and they've assured users that the quality of service will remain unchanged, the tech giant told TechCrunch. Even though the business might not face a big hit, it might impact Pakistan's digital journey as Microsoft played a leading role in it. It launched computer labs in rural schools, supported digital adoption among small businesses, and worked with educational institutions. 'We tried to give Pakistani youth a real shot at opportunity,' said Rehman. In a dramatic turn of events, former Pakistani President Arif Alvi connected Microsoft's exit to a bigger political picture. 'Microsoft's decision to shut down operations in Pakistan is a troubling sign for our economic future,' he said on X (formerly twitter). The ex-President recalled his conversation with Bill Gates who hinted at plans of a majorMicrosoft investment in Pakistan. 'But then, everything went rapidly downhill. Regime change upended those plans, and the promise of investment slipped away.' He also warned that Pakistan now spirals in a whirlpool of uncertainty. 'The only path forward is through political dialogue among stakeholders. Public opinion, as many know, reflects deep disillusionment with the current arrangement & the electoral process. Yet, a vast majority still believes that dialogue is the only way to navigate this crisis,' he said.
India Today
3 days ago
- Business
- India Today
Microsoft shuts down Pakistan operations after 25 years amid global restructuring and layoffs
In a move that has rattled Pakistan's already fragile tech landscape, Microsoft has announced the closure of its local office, ending a 25-year presence in the country. The tech giant, as part of its global workforce reduction strategy, will now serve Pakistani clients remotely through its regional hubs and authorised resellers, rather than maintaining a direct presence on the ground. Microsoft confirmed the shift in a statement to TechCrunch, saying it reflects a model it already uses in various countries. The company was quick to assure that existing customer agreements and services will continue unaffected, and that the quality of support will remain decision, though affecting only five employees locally, has sent shockwaves through Pakistan's business and tech communities. These individuals were largely focused on enterprise sales of Microsoft services such as Azure and Office. Unlike in India, Microsoft never established a development or engineering base in Pakistan, limiting its footprint to liaison and sales operations. Still, the withdrawal is being seen as more symbolic than numerical, a troubling signal about Pakistan's appeal to international tech the move coincides with Microsoft's largest round of global job cuts, with over 9,000 positions recently being slashed worldwide. Pakistan's Ministry of Information and Broadcasting has attributed the company's exit to this wider organisational restructuring. In reality, Microsoft had already been quietly transitioning core functions such as licensing and contract management to its European hub in Ireland over the past few years. Former Microsoft Pakistan country head Jawwad Rehman urged the government to take proactive steps to retain and attract global tech players. 'Even global giants like Microsoft find it unsustainable to stay,' he wrote in a candid LinkedIn post, calling on the IT ministry to initiate KPI-driven engagement strategies with multinational firms. Former President Arif Alvi also weighed in on social media, labelling Microsoft's retreat as 'a troubling sign for our economic future.' Alvi revealed that Microsoft had once considered expanding its operations in Pakistan but ultimately chose Vietnam due to the latter's greater political and economic stability. 'The opportunity was lost,' he added. The timing of Microsoft's exit has raised further eyebrows, especially as it comes just days after the government announced an ambitious initiative to provide half a million young people with global IT certifications, including those from Microsoft itself. The disconnect between policy ambition and on-ground corporate confidence has laid bare the challenges facing Pakistan's tech Google continues to invest in local educational initiatives and is even exploring Chromebook manufacturing in Pakistan, Microsoft's quiet withdrawal underscores a broader issue: Pakistan has yet to position itself as a serious player in the global tech outsourcing arena. In contrast to neighbouring India, which has built a thriving IT export economy, Pakistan's tech space is often dominated by regional players such as Huawei, with global giants remaining Pakistan eyes digital transformation, Microsoft's departure is a wake-up call, one that highlights the need for stability, clear policy direction, and stronger engagement with the global tech community.- Ends
Time of India
3 days ago
- Business
- Time of India
Microsoft closes its Pakistan office after 25 years
Karachi: Tech giant Microsoft has announced to shut down its limited operations in Pakistan as part of its global strategy to reduce workforce, which various stakeholders termed on Friday as a "troubling sign" for the country's economy. Microsoft, while closing its office in Pakistan on Thursday after 25 years, cited global restructuring and a shift to a cloud-based, partner-led model. The move came as the tech giant cut roughly 9,100 jobs worldwide (or about 4 per cent of its workforce) in its largest layoff round since 2023. Jawwad Rehman, former founding Country Manager of Microsoft Pakistan , urged the government and IT minister to engage with the tech giants with a bold KPI (Key Performance Indicators) driven plan. He said the exit reflected the current business climate. "Even global giants like Microsoft find it unsustainable to stay," he posted on LinkedIn. Former Pakistan president Arif Alvi, in a post on X, also expressed concern over Microsoft shutting down operations. "It is a troubling sign for our economic future," he wrote. He claimed Microsoft once considered Pakistan for expansion, but that instability led the company to choose Vietnam instead by late 2022. "The opportunity was lost," he wrote. Jawwad explained that Microsoft didn't operate a full commercial base in Pakistan, relying instead on liaison offices focused on enterprise, education, and government clients. Over recent years, much of that work had already shifted to local partners, while licensing and contracts were managed from its European hub in Ireland.
The Hindu
3 days ago
- Business
- The Hindu
Microsoft closes its Pakistan office after 25 years
Tech giant Microsoft has announced it will shut down its limited operations in Pakistan as part of its global strategy to reduce its workforce, which various stakeholders termed on Friday as a 'troubling sign' for the country's economy. Microsoft, while closing its office in Pakistan on Thursday after 25 years, cited global restructuring and a shift to a cloud-based, partner-led model. The move came as the tech giant cut roughly 9,100 jobs worldwide (or about 4 per cent of its workforce) in its largest layoff round since 2023. Jawwad Rehman, former founding Country Manager of Microsoft Pakistan, urged the government and IT minister to engage with the tech giants with a bold KPI (Key Performance Indicators) driven plan. He said the exit reflected the current business climate. 'Even global giants like Microsoft find it unsustainable to stay,' he posted on LinkedIn. Former Pakistan president Arif Alvi, in a post on X, also expressed concern over Microsoft shutting down operations. 'It is a troubling sign for our economic future,' he wrote. He claimed Microsoft once considered Pakistan for expansion, but that instability led the company to choose Vietnam instead by late 2022. 'The opportunity was lost,' he wrote. Jawwad explained that Microsoft didn't operate a full commercial base in Pakistan, relying instead on liaison offices focused on enterprise, education, and government clients. Over recent years, much of that work had already shifted to local partners, while licensing and contracts were managed from its European hub in Ireland.
