ISLAMABAD (Web Desk) – The Ministry of Information Technology has clarified that Microsoft is not pulling out of the Pakistani market, countering recent speculation triggered by social media posts and media reports. Instead, the global tech company is transitioning to a partner-led, cloud-first operational model in the country.

The clarification comes after a LinkedIn post by a former Microsoft Pakistan executive sparked concern, suggesting the closure of Microsoft’s local office and the layoff of some employees.

In its statement, the IT Ministry explained that Microsoft had already relocated its licensing and commercial contract operations for Pakistan to its European hub in Ireland over the past few years. Meanwhile, service delivery in Pakistan has been managed through certified local partners.

“Microsoft is currently reviewing the status of its liaison office in Pakistan as part of a global workforce optimization effort,” the ministry noted. “This move is consistent with Microsoft’s broader strategy of reducing direct headcount and increasing reliance on a partner-driven, cloud-based model. It should not be misinterpreted as an exit from Pakistan.”

Pakistan’s IT industry continues to grow steadily. From July 2024 to May 2025, the sector brought in $3.4 million in exports, up from $2.9 million during the same period last year, according to data from the State Bank of Pakistan.

As the government under Prime Minister Shehbaz Sharif pushes for higher tech exports to boost the country’s $350 billion economy, the IT Ministry emphasized that Microsoft’s shift reflects broader global trends in technology delivery.

“The worldwide transition from traditional on-premise software to Software-as-a-Service (SaaS) is driving significant structural changes in how tech firms operate internationally — Microsoft included,” the statement said.

Reaffirming the government’s commitment to a strong digital ecosystem, the ministry added, “We recognize the strategic importance of global technology leaders operating in Pakistan. The Ministry of IT and Telecom will continue to work closely with Microsoft’s regional and global leadership to ensure that any operational changes reinforce Microsoft’s long-term engagement with Pakistani customers, developers, and partners.”