Microsoft shifting to partner-led delivery model, not retreating from Pakistan — IT ministry

Microsoft shifting to partner-led delivery model, not retreating from Pakistan — IT ministry
A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France on January 9, 2025. (REUTERS/File)
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Updated 05 July 2025
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Microsoft shifting to partner-led delivery model, not retreating from Pakistan — IT ministry

Microsoft shifting to partner-led delivery model, not retreating from Pakistan — IT ministry
  • The statement follows reports about the closure of Microsoft’s office and lay-off of its employees in Pakistan
  • Islamabad to engage with tech giant to ensure any structural changes strengthen its commitment to local customers

ISLAMABAD: Pakistan’s information technology (IT) ministry said on Saturday that global tech giant Microsoft was not retreating from the Pakistani market and was only moving to a partner-led, cloud-based delivery model in the South Asian country.

The statement followed media reports about the closure of Microsoft’s office and lay-off of a small number of employees in Pakistan, sparked by a LinkedIn post by a former head of Microsoft in the country.

The Pakistani IT ministry said the tech giant had shifted its licensing and commercial-contract management for Pakistan to its European hub in Ireland in recent years, while its day-to-day service delivery had been handled entirely by certified local partners.

“Against that backdrop, we understand Microsoft is now reviewing the future of its liaison office in Pakistan as part of a wider workforce-optimization program,” the IT ministry said in a statement.

“This would reflect a long-signalled strategy, consolidating direct headcount and moving toward a partner-led, cloud-based delivery model, rather than a retreat from the Pakistani market.”

Pakistan’s IT sector has witnessed a significant growth in recent years, reaching $3.4 million from July 2024 till May 2025, compared to $2.9 million during the same period the previous year, according to the Pakistani central bank.

Prime Minister Shehbaz Sharif’s government has been striving to further increase these exports to support the $350 billion economy, and the IT ministry sought to allay concerns about the clousure of the Microsoft office.

It said the global pivot from on-premise software (transactional deals) to Software-as-a-Service (SaaS) continues to reshape how technology firms structure their international operations, and Microsoft is no exception.

“Pakistan’s Ministry of IT & Telecom recognizes the strategic value of having leading global technology providers active in the country,” the ministry said.

“We will continue to engage Microsoft’s regional and global leadership to ensure that any structural changes strengthen, rather than diminish, Microsoft’s long term commitment to Pakistani customers, developers and channel partners.”


Pakistan central bank surprises by holding key rate steady at 11%

Pakistan central bank surprises by holding key rate steady at 11%
Updated 9 sec ago
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Pakistan central bank surprises by holding key rate steady at 11%

Pakistan central bank surprises by holding key rate steady at 11%
  • Decision comes as IMF slashes growth forecast to 3.6% for FY26, well below Pakistan’s target
  • The government says the economy has stabilized, but analysts warn growth remains fragile

KARACHI: Pakistan’s central bank left its key interest rate unchanged at 11% on Wednesday, saying the inflation outlook had worsened a little due to energy price fluctuations, surprising analysts who had expected another cut.

In a Reuters poll this week, all 15 analysts said they expected the SBP to ease, with nine forecasting a 50-basis-points cut, four predicting a deeper 100-basis-points reduction and two projecting a smaller 25-basis-points cut.

The decision came as Pakistan pushes reforms under a $7 billion IMF program and a contractionary budget to curb deficits.

In its Economic Outlook Update on Tuesday, the IMF cut its growth forecast for the fiscal year ending June 2026 to 3.6%, well below the government’s 4.2% target.

“The Monetary Policy Committee (MPC) ... noted that the inflation outlook has somewhat worsened in the wake of higher than anticipated adjustment in energy prices, especially gas tariffs,” the State Bank of Pakistan (SBP) said in a statement.

The panel also noted that the trade deficit was expected to widen further in the fiscal year ending June 2026 amid a pickup in economic activity and a slowdown in global trade.

“Given this macroeconomic outlook and the emerging risks, the MPC considered today’s decision as necessary to ensure price stability,” it said.

The SBP had held rates in June after a 100-basis-points cut in May that resumed easing following a March pause. Since June 2024, it has lowered its policy rate by 1,100 basis points from a record 22% as price pressures receded.

Headline inflation slowed to 3.2 % in June and is projected at 3.5%–4.5% in July, within the SBP’s 5.5%–7.5% target range for the fiscal year ending June 2026.

The government says the economy has stabilized, but analysts warn growth remains fragile and global commodity price swings could still add pressure on prices and external balances.


Pakistan, US navy ships hold joint drills in North Indian Ocean

Pakistan, US navy ships hold joint drills in North Indian Ocean
Updated 34 min 56 sec ago
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Pakistan, US navy ships hold joint drills in North Indian Ocean

Pakistan, US navy ships hold joint drills in North Indian Ocean
  • PNS Shamsheer and USS Fitzgerald conduct exercises to boost interoperability, maritime coordination
  • Drills follow Pakistan-India military standoff in May that raised regional security and maritime tensions

ISLAMABAD: Pakistan Navy Ship (PNS) Shamsheer and United States Ship (USS) Fitzgerald conducted an exercise in the North Indian Ocean to enhance interoperability and strengthen maritime cooperation, the Pakistan Navy said on Wednesday.

The exercise follows a military stand-off between Pakistan and India in May, which also made the naval forces of the two countries adopt a hostile posture, though it did not lead to any exchange of fire at sea.

Pakistan and the US navies have a long history of joint maritime cooperation through drills, bilateral training missions and multinational operations like AMAN and CTF-150.

These engagements have focused on maritime security and coordinated responses to regional threats, reflecting a strategic partnership in maintaining stability in the Arabian Sea.

“PNS Shamsheer and USS Fitzgerald conducted a passage exercise in the North Indian Ocean, underscoring the maritime cooperation between the two navies,” the Pakistan Navy said in a post on X. 

“The exercise featured a series of professional naval engagements aimed at enhancing interoperability,” it added. “These interactions reaffirm the shared commitment of both navies to maritime security and regional stability.”

The PNS Shamsheer is a guided-missile frigate commissioned by the navy in December 2009.

It was built in China and has a strong track record in maritime security, participating in regional patrols, anti-piracy operations multinational exercises and bilateral drills.

The USS Fitzgerald is a guided-missile destroyer commissioned in October 1995 under the US Seventh Fleet.

The navy drill between Pakistan and the US comes at a time when the two countries are also in the process of rejuvenating their political and economic relationship.

The exercise is part of Pakistan’s broader strategy to strengthen naval partnerships and reinforce its presence in the region amid ongoing strategic rivalries.


UN credibility at stake over Palestine, Kashmir, says Pakistan speaker, as he backs multilateralism

UN credibility at stake over Palestine, Kashmir, says Pakistan speaker, as he backs multilateralism
Updated 30 July 2025
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UN credibility at stake over Palestine, Kashmir, says Pakistan speaker, as he backs multilateralism

UN credibility at stake over Palestine, Kashmir, says Pakistan speaker, as he backs multilateralism
  • Ayaz Sadiq was speaking at the 6th World Conference of Speakers of Parliament in Geneva
  • He warned the UN risked the fate of the League of Nations if multilateralism was undermined

ISLAMABAD: Pakistan’s National Assembly Speaker (NA) Sardar Ayaz Sadiq has warned that the credibility of the United Nations system is under threat, according to an official statement on Wednesday, as he called for a return to multilateralism to address long-standing conflicts in places like Palestine and Kashmir.

Speaking at the 6th World Conference of Speakers of Parliament in Geneva, Sadiq said the international system was being undermined by populism, unilateralism and the politicization of humanitarian principles.

He stressed the need for diplomacy and institutional reform to restore global trust in the system.

“The world has witnessed enough bloodshed,” Sadiq told parliamentary leaders from around the globe. “It is time for new thinking, time to embrace pluralism, time to respect diversity and time for a new beginning.”

Citing the UN Security Council’s failure to resolve protracted disputes around the world, he said peaceful conflict resolution must now be treated not only as a legal obligation, but a strategic imperative.

Coercion and unilateral action, he added, cannot deliver sustainable peace.

Sadiq evoked Geneva’s historic role as the heart of diplomacy, recalling that the city had been the birthplace and graveyard of the League of Nations.

He maintained today’s multilateral institutions risk a similar fate if they continue to be undermined by narrow nationalism and hegemonic politics.

The NA speaker praised the unanimous adoption of UN Security Council Resolution 2788, led by Pakistan during its recent presidency, which calls for strengthening global mechanisms for peaceful dispute settlement through mediation, arbitration, judicial action and diplomatic engagement.

Turning to the global economy, he said over 100 developing countries are facing debt distress or liquidity crises, highlighting what he described as systemic shortcomings in the international financial and trade architecture.

Sadiq called for urgent reforms to build a fairer, development-oriented global financial system that supports the Global South, enhances economic resilience and reduces inequality.

He also reiterated Pakistan’s longstanding call to reform and democratize the UN Security Council, making it more representative, accountable and transparent.

Only such reform, he added, can help restore trust in multilateralism and enable the global system to meet the challenges of the 21st century.


Climbers attempt rescue of German biathlete injured on Pakistan mountain

Climbers attempt rescue of German biathlete injured on Pakistan mountain
Updated 30 July 2025
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Climbers attempt rescue of German biathlete injured on Pakistan mountain

Climbers attempt rescue of German biathlete injured on Pakistan mountain
  • Germany’s Laura Dahlmeier was struck by falling rocks at 5,700 meters on Laila Peak
  • The Olympian is a seven-time biathlon world champion and certified mountain guide

KHAPLU, Pakistan: A team of foreign climbers were on Wednesday due to launch a rescue mission for German double biathlon champion Laura Dahlmeier, days after she was seriously injured by a rockfall on a Pakistani mountain.

The accident happened around midday on Monday at an altitude of 5,700 meters on Laila Peak in the Karakoram range, according to a statement from her team on her official social media sites.

Her climbing partner was able to sound the alarm after reaching safety.

“It was determined that a helicopter rescue is not possible,” Areeb Ahmed Mukhtar, a senior local official in Ghanche district, where the more than 6,000 meter (19,700 feet) mountain is located, told AFP.

“The conditions at the altitude where she was injured are extremely challenging, and a team of foreign climbers will launch a ground rescue mission today,” he added.

Shipton Trek & Tours Pakistan, which organized the expedition, confirmed the ground rescue by a team of four that includes three Americans and a German mountaineer.

The 31-year-old was “hit by falling rocks,” her team said on Tuesday, adding no one had yet been able to reach her due to the danger of further rockfalls and the site’s “remoteness.”

A helicopter managed to fly over the location and rescuers saw that “the experienced mountaineer is at least seriously injured,” it said.

“No signs of life were detected.”

Muhammad Ali, a local disaster management official, told AFP that weather conditions have been “extremely harsh” in the region for the past week, with rain, strong winds and thick clouds.

Dahlmeier, an experienced mountaineer, had been in the region since the end of June and had already ascended the Great Trango Tower.

The International Biathlon Union said in a statement it was “thinking of Dahlmeier and her family, hoping for good news to emerge soon.”

She has won seven world championship gold medals, and at the 2018 Winter Olympics in Pyeongchang she became the first female biathlete to win both the sprint and the pursuit at the same Games.

Dahlmeier retired from professional competition in 2019 at the age of 25.

She went on to become a commentator on biathlon events for German broadcaster ZDF, and also took up mountaineering.

She is a certified mountain and ski guide and an active member of the mountain rescue, according to her team.


Pakistan PM says human smuggling in decline after crackdown prompted by migrant boat tragedies

Pakistan PM says human smuggling in decline after crackdown prompted by migrant boat tragedies
Updated 30 July 2025
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Pakistan PM says human smuggling in decline after crackdown prompted by migrant boat tragedies

Pakistan PM says human smuggling in decline after crackdown prompted by migrant boat tragedies
  • Sharif issues message on World Day Against Trafficking in Persons, calls for collective national resolve
  • He says FIA and intelligence agencies have curbed smuggling networks, prosecuted complicit officials

ISLAMABAD: Prime Minister Shehbaz Sharif said on Wednesday human smuggling incidents involving Pakistani migrants had declined following a series of deadly boat tragedies, crediting law enforcement actions for curbing the crime, which he described as an organized global enterprise of exploitation.

Sharif’s remarks came in a statement marking the World Day Against Trafficking in Persons, observed this year under the theme “Human Trafficking: A Coordinated Crime – End Exploitation.”

The message follows a series of maritime tragedies over the past two years in which scores of Pakistanis have drowned while attempting to reach Europe through irregular sea routes.

These included a shipwreck off Greece in mid-2023, a December 2024 incident near the Greek coast, a January 2025 disaster off Morocco and two separate capsizings off the Libyan coast in early and mid-2025.

“To prevent such incidents and bring traffickers to justice, the federal government formed a special task force for timely intervention,” Sharif said in the statement circulated by the Prime Minister’s Office to mark the day.

“It is encouraging that the task force has worked with diligence and strategy to address the root causes, motives and consequences of this grave crime,” he added. “The FIA and Intelligence Bureau have significantly reduced the activities of human smuggling networks, and complicit officials have also been held accountable.”

The prime minister described human smuggling as a “transnational crime” that targets vulnerable people in search of livelihoods.

“Criminal networks around the world exploit citizens seeking employment opportunities through human smuggling,” he said.

“In recent years, the tragic deaths of Pakistani migrants who drowned while trying to travel abroad illegally have further exposed the horrific and dangerous face of human smuggling.”

Sharif noted the government was not only targeting smugglers but also educating the public about safe, legal avenues for overseas employment.

He emphasized while the state is working to create job opportunities at home and abroad, risking one’s life through illegal routes was both dangerous and a violation of national and international law.

Pakistan actively participates in global platforms to counter trafficking, including the Budapest Process, Bali Process and the STARSOM Project, which focus on regional cooperation across Asia, Africa and the Americas.

“Today is an opportunity to renew our collective resolve,” the prime minister said, “to ensure that federal and provincial governments, law enforcement agencies, the foreign ministry and intelligence institutions continue to play their part in eradicating this heinous crime.”