Bonum Certa Men Certa

Cablegate: Even Amid Departure From Microsoft, Bill Gates Lobbies Pakistani Government to Pay Microsoft

Cablegate



Summary: Government of Pakistan (GOP) and the US government speak of weapons and Microsoft

The following Cablegate cable, dated 2008, has a special section about "MICROSOFT CORPORATION". It says that the "GOP currently uses 90 percent of pirated Microsoft Software for its operations worth USD 10 million. In an April meeting with now former Prime Minister Shaukat Aziz at the Economic Forum Summit in Boao, China, Microsoft's Bill Gates proposed that the GOP pay USD 10 million over a five year period for legal licenses for government desktops, and asked that the PM respond within 45 days. The deadline passed on June 5 without a response from the GOP.



"Bill Gates sent a letter to former Prime Minister in June 2007 to follow up on their agreement and Microsoft has yet to receive a response."

This was written around the same time Microsoft Gold Partners in Pakistan helped subvert an OOXML vote on the face of it. Here is the cable in full:








VZCZCXRO1809 PP RUEHBI RUEHLH RUEHPW DE RUEHIL #0392/01 0260355 ZNY CCCCC ZZH P 260355Z JAN 08 FM AMEMBASSY ISLAMABAD TO RUEHC/SECSTATE WASHDC 4672 INFO RHMFISS/CDR USCENTCOM MACDILL AFB FL PRIORITY RUEKJCS/SECDEF WASHINGTON DC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC RUCPDOC/USDOC WASHDC RUEHNE/AMEMBASSY NEW DELHI 2698 RUEHDO/AMEMBASSY DOHA 1482 RUEHKP/AMCONSUL KARACHI 8754 RUEHLH/AMCONSUL LAHORE 4669 RUEHPW/AMCONSUL PESHAWAR 3338 RUEHBI/AMCONSUL MUMBAI 3743

C O N F I D E N T I A L SECTION 01 OF 03 ISLAMABAD 000392

SIPDIS

SIPDIS

E.O. 12958: DECL: 01/24/2018 TAGS: ECON [Economic Conditions], PREL [External Political Relations], ETRD [Foreign Trade], EAID [Foreign Economic Assistance], EINV [Foreign Investments], EFIN [Financial and Monetary Affairs], PGOV [Internal Governmental Affairs], PK [Pakistan] SUBJECT: AMERICAN COMPANIES EXPERIENCE INCREASED DIFFICULTY DOING BUSINESS IN PAKISTAN

REFS: (A) Islamabad 191, (B) Islamabad 228, (C) Islamabad 288

Classified By: DCM Peter W. Bodde, Reasons 1.4 (b), (d)

€¶1. (C) SUMMARY: Embassy Islamabad has received an increased number of complaints from American companies over the last several months regarding unfair practices on the part of GOP, many stemming from action of the caretaker government. General Electric, Oracle, Bell Helicopters and AES have experienced problems in GOP tenders. Chevron and AES have yet to be paid millions of dollars for energy products and services rendered. Netsol and Microsoft have experienced non-compliance or interference in intellectual property rights (IPR) violations. These problems, totaling an estimated USD 1.82 billion, present challenges for American businesses to fairly compete and survive in Pakistan. The GOP's cash crunch is the cause of the slow payments to the energy companies and the cancellation of the Augusta helicopter contract, and may further complicate bidding on GOP contracts. END SUMMARY.

--------------------------------------------- ------- PROBLEMATIC GOP CONTRACT BIDS WORTH USD 1.7 BILLION --------------------------------------------- -------

€¶2. (C) GENERAL ELECTRIC (GE): GE won a tender for a Railways Re-signaling Project with the Ministry of Railways worth USD 46 million in Phase One to re-signal the existing railway lines in Pakistan. Phase one and two are worth USD 150 million. Pakistan Railways made technical changes in the contract so that the full contract can be awarded to another supplier using cheaper Chinese inputs.

€¶3. (C) GE CURRENT STATUS: On Dec 19, a letter was sent to the Chairman of the Pakistan Railways by the Ambassador requesting that the transparency of the tender process be respected and that GE's contract award for Phase One of the project be upheld. Neither GE nor the Embassy has received any reply to date. Railway infrastructure was targeted and damaged in the post Bhutto assassination violence and the GOP is currently assessing the extent of the damage and how this will impact planned railway projects.

€¶4. (C) ORACLE: Oracle is interested in projects with Pakistan International Airways (PIA) worth USD 23.5 million. PIA plans to implement ERP (Enterprise Resource Planning) and MRO (Maintenance Repair and Overhaul) solutions using prepackaged applications software in order to automate its key business functions such as revenue accounting, inventory, aircraft maintenance, repair and overhaul. The two other competitors are representing German software package SAP.

€¶5. (C) ORACLE CURRENT STATUS: Samina Rizwan, Regional Director, reported on December 19 that Oracle was structured out of the ERP project and could not fairly compete for the MRO project because the only competitor booked all costs under the ERP project to "give away the ERP project for free." Oracle does not plan to submit a tender due to their perceived unfairness in the procurement process.

€¶6. (C) BELL HELICOPTERS: Bell Helicopter bid on a tender with the Pakistan Military worth USD 35 million. The Cabinet Division plans to procure new twin engine and single engine helicopters totaling USD 35 million for which the local distributor for Bell Helicopters has expressed keen interest. Bell Helicopters have served the Cabinet Division and other GOP agencies for the past 15 years.

€¶7. (C) BELL CURRENT STATUS: The GOP tender was structured for the specifications of Agusta helicopters. All competitors were structured out of the bid because of the technical specifics related to Augusta's products. Advocacy letters from the American Embassy and Canadian High Commission were unsuccessful in convincing the GOP to open its tender to competition. January 25 press reports indicate that the GOP is cancelling the Augusta helicopter contract. Comment: The USG has given the GOP two VIP helicopters for the President's use. End comment.

€¶8. (C) AES: AES has the opportunity to build a 1000-1200 MW Coal Fired imported Power Plant near Karachi worth USD 1.6 billion. The Private Power and Infrastructure Board of Pakistan has issued AES Pakistan a Letter of Interest to carry out a feasibility study by March 15.

€¶9. (C) CURRENT STATUS: AES reported to ECON that they are getting signals from the GOP that the tender process for the power plant may not involve a level playing field. AES is awaiting the installation

ISLAMABAD 00000392 002 OF 003

of a new government before moving forward with further expansion plans.

--------------------------------------------- ------ NON-PAYMENT ISSUES WITH GOP WORTH USD 85.2 MILLION --------------------------------------------- ------

€¶10. (C) CHEVRON: The GOP owes Chevron nearly USD 3 billion rupees (USD 50.2 million) in back payments on differential price claims from August 2007- January 2008. The GOP heavily subsidizes consumer gas prices and has not increased local prices since gas was approximately USD 55 per barrel.

€¶11. (C) CHEVRON CURRENT STATUS: The Ministry of Petroleum and Natural Resources is willing to pay, but they and Chevron report that the Ministry of Finance is the hold up. Chevron's headquarters would like to see a reimbursement of at least USD 27.5 million made prior to January 31, 2008 or the company plans to reduce distribution to Pakistan from 40,000 metric tons to 20,000 metric tons. Chevron currently supplies approximately 25 percent of Pakistan's gas and diesel.

€¶12. (C) AES: AES reports that the Pakistan Water and Power Development Authority (WAPDA) consistently does not pay the company in a timely manner for electricity. The Country Manager said that his subsidiary routinely stops plant operations from time to time due to lack of funds available to purchase power plant fuel.

€¶13. (C) AES CURRENT STATUS: AES has received some payment for electricity production and is currently operational but the company is still owed approximately USD 30 million for its operations and services rendered.

------------------------------------------- THE GOP CASH CRUNCH AND GOVERNMENT SPENDING -------------------------------------------

€¶14. (C) The GOP's cash crunch is due to increased fuel and food subsidy bills, lack of political will to pass through increased international fuel and food prices to consumers already faced by high essential good inflation in an election year, and increased government spending on infrastructure projects prior to elections. This increased spending means that there is less money available to pay outstanding bills or contemplate new projects (ref C), particularly since GOP revenues are not able to keep pace with the increased expenditures. The GOP has deferred any decision to pass along increased commodity prices until after the February 18 elections, which will cause further increases in the fiscal and current account deficits. The GOP has also resorted to increased borrowing from the State Bank of Pakistan. We believe the GOP cash crunch is behind the Augusta contract cancellation. Finance Minister Shah (ref A) acknowledged that the GOP's fiscal difficulties (ref A) were holding up payments to the energy companies in a January 4 meeting with the Ambassador.

--------------------------------------------- REPORTED IPR VIOLATIONS WORTH USD 30 MILLION ---------------------------------------------

€¶15. (C) NETSOL TECHNOLOGIES: NetSol has a pending IPR investigation worth USD 20 million. The company reported Dec 20 that two former employees stole secret information from the company and launched their own public company in Pakistan to sell the exact same products. The company filed a complaint with the Federal Investigative Agency (FIA) Nov 22 and investigators then arrested one of the partners and scanned his laptop which contained over 100 secret corporate documents. On December 18, 2007 FIA contacted NetSol to say the Supreme Court Justice Nawaz Abbasi, a family friend of one of the accused, called their investigators in for a meeting and asked them to drop the case, return the laptop, and dismiss evidence.

€¶16. (C) NETSOL CURRENT STATUS: Embassy drafted letters requesting information from the FIA on the status of this on-going investigation. Embassy pressure was successful. FIA retained the laptop, the company dissolved, a non-disclosure agreement was signed, and the Supreme Court justice moved his pressure down to a civil suit.

€¶17. (C) MICROSOFT CORPORATION: GOP currently uses 90 percent of pirated Microsoft Software for its operations worth USD 10 million. In an April meeting with now former Prime Minister Shaukat Aziz at the Economic Forum Summit in Boao, China, Microsoft's Bill Gates

ISLAMABAD 00000392 003 OF 003

proposed that the GOP pay USD 10 million over a five year period for legal licenses for government desktops, and asked that the PM respond within 45 days. The deadline passed on June 5 without a response from the GOP.

€¶18. (C) MICROSOFT CURRENT STATUS: Bill Gates sent a letter to former Prime Minister in June 2007 to follow up on their agreement and Microsoft has yet to receive a response.

€¶19. (C) COMMENT: With an estimated total of approximately USD 1.82 billion at stake, Embassy Islamabad considers the increased activity a troubling trend. Increased economic and financial problems continue to compound the GOP's political difficulties. The newly elected government, regardless of party, will have to face mounting economic challenges. Embassy will continue to closely monitor each situation involving these and other American companies and raise each issue with the appropriate GOP officials on a regular basis. END COMMENT.

PATTERSON - 1 -







Much of the above is too political for us to delve into.

Comments

Recent Techrights' Posts

"Over 1,100 Law Firms Gone in Five Years" in the United Kingdom (UK) Alone
There are basically way too many lawyers (looking for "business", e.g. threats and lawfare) and not enough positions to fill
Microsoft FUD From Microsoft Site Helps Distract From Actual Microsoft Back Doors
Published on a Sunday
IBM is Killing Red Hat's Portfolio - Including Linux - to Prop Up Ponzi Scheme ("AI")
IBM is killing Red Hat
Gemini Links 02/03/2026: Weird Phone Calls, Small Phones, and Exploring Racket
Links for the day
EPO "Cocaine Communication Manager" - Part V - Jobs at the EPO for Those Connected to Cocaine Addicts (Skills Not Required)
EPO management is trying to shoot the messenger
Teaser: The Next Series About the SRA, Which Would be Just as Effective as It Is Right Now If It Had Zero Employees
the lapdog (of the "litigation industry") that is meant to be perceived as a watchdog
 
LLM Slop Does Not Know People (It Knows Nothing) and Cannot Distinguish Between People. It's a Recipe for Disaster.
no way of knowing who's who
Free Software Foundation Needs to Become More Active in Europe to Avoid Impersonation by Microsoft-Sponsored Groups
So far we've hardly seen the FSF saying anything at all about the US president
Links 02/03/2026: "Not Envious of Billionaires" and Palantir SLAPPs "Swiss Magazine For Accurately Reporting That The Swiss Government Didn't Want Palantir"
Links for the day
There Has Never Been a Better Time to Quit Social Control Media
Those networks are selling something. And that something is not peace because peace does not sell "attention".
Microsoft Users Drowning in Slop, If They Complain Microsoft Censors Them
Like an authoritarian regime
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, March 01, 2026
IRC logs for Sunday, March 01, 2026
Speed of Sites Matters
Being easily accessible all the time matters to us
Dr. Andy Farnell on "Good Tech"
in the age of "rent everything" and "own nothing"
Gemini Links 01/03/2026: Simpler Software and Announcing OFFLFIRSOCH (OFFLine-FIRst SOftware CHallenge) 2026
Links for the day
Booz Allen Hamilton, the Former Employer of Edward Snowden (NSA Contractor), is Drowning in Debt
Can Supreme Leader Cheeto bail it out like he does slop companies?
On the Concept of "Protected Class" (or Race) at IBM
It's self-harming as in practice it imperils the company and harms the reputation/brand
The Mass Layoffs at Microsoft That Nobody in the "News Industry" Wants to Talk About (and TheLayoff.com Censored, Then It Censored the Evidence of the Censorship)
They basically cover up how they censored the news about Microsoft layoffs
Richard Stallman to Give at Least Three Talks in Switzerland, Starting This Week
No mention (yet) of the Bern talk
On Who 'Speaks for' Techrights
typically a case of misrepresenting the site
'FSFE' an Imposter in Europe, Paid by GAFAM to Represent GAFAM Interests
The Microsoft-sponsored 'FSFE', which violates the terms of use of its name, is causing confusion [...] formally-recognised institutions got tricked into thinking that the Microsoft-sponsored 'FSFE' is the FSF
Lots of Lies From the Slop Industry
The slop industry relies on fake news to give a notion or fake demand
Links 01/03/2026: American Plutocrats Buy American Media While American Constitution Shredded
Links for the day
Solicitors Regulation Authority (SRA) Inaction and Incompetence - Part I - Introduction
The SRA is a sham. Many people know this already, but we want to document our own experiences with it.
Live Simply, Live Better
Life isn't about "collecting" possessions; it's about doing things that matter and accumulating knowledge so as to make better choices
Now That XBox is Pretty Much Dead and There Are Mass Layoffs at Microsoft
This means our predictions about Microsoft (and XBox) are "falling into place"
Gemini Links 01/03/2026: "In the Spirit of OFFLFIRSOCH" and "Delete Patreon"
Links for the day
ACM Lowers Its Standards for Age of Autocracy
IBM is more than happy to work with autocracies
The term FUD (fear, uncertainty, doubt) was created to describe IBM's tactics and IBM is doing it again
Rob Thomas or "RT"
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, February 28, 2026
IRC logs for Saturday, February 28, 2026
Slop is Distraction
LibreWolf will never include any of this slop nonsense, no matter if toggled on or off
Cult inquiry: Parliament of Victoria, last chance to have your say
Reprinted with permission from Daniel Pocock
Internet Relay Chat (IRC) Turns 37.5
Can IRC reach age 75?
Gemini Links 28/02/2026: Loadbars 0.13.0, IME (Input Method Editor), and ColorColumn in Vim
Links for the day
Two EPO Strikes in March (Maybe More)
As per the SUEPO diary [...] We still have an ongoing series about the EPO, with several more series to start later
Why We Are Concerned About the SRA's Failure and What That Means to the Profession of Lawyers in the UK
Unregulated industries will lose their credibility as there is a threat of growing perception that they operate outside the law rather than practice law
Over 10,000 Pages/Articles Per Year?
Probably my most productive month, ever
Keeping Techrights Online 99.99% of the Time
Some time later this year we'll tell a very long story about how extremists attacked our webhosts
Richard Stallman, Founder of the Free Software Movement, Will be Giving Public Talk in Bern (Switzerland) in Less Than 12 Days
We are still doing a series about him and his talks
Still Lots of IBM Departures
It's not that we lack evidence of IBM layoffs. It's just that we have ample evidence of the press not doing its job (or barely existing anymore).
The Register MS Standards: Promote a Ponzi Scheme in Exchange of Money
Once upon a time it was a serious publisher. Months ago it was taken over by a Microsoft person.
Slopfarms' Demise Looks Like the Beginning of the End (Lowered Demand for Slop)
Slop about "Linux" has gotten hard to find this past week
Dr. Andy Farnell: Time to Pull the Plug?
insightful, as usual
Links 28/02/2026: "Tehran’s Two-Tiered Internet", "Internet Under Fire"
Links for the day
When an Entire News Site is About One Topic (and One Topic Only)
Tomorrow we start a new series for the new month
Links 28/02/2026: Bill Epsteingate Admits Sex With Young Girls, "Epstein Files Are the Horror That Keeps on Giving"
Links for the day
IBM: Where Companies Come to Perish
thelayoff.com is censoring stories
Tech Layoffs Are Not Because of Slop, They're an Effect of a Rotting Economy and Tech Giants Being Too Deep in Debt
Block is rapidly sinking in debt
The Slopfarms' Business Case (or Business Model) Never Existed and Nowadays, in 2026, They've Mostly Collapsed
Hopefully by year's end many slop suppliers will be offline and slopfarms that rely on them throw in the towel
March in London Today Against Slop's Harms to Society (and the Environment), Starting at 12:00 GMT at the Microsoft OpenAI Office
Today there is a protest in London (UK)
Microsoft Mass Layoffs Have Officially Resumed, Microsoft's Waggener Edstrom/Frank Shaw Lied
"The former employees say this was a mass layoff"
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, February 27, 2026
IRC logs for Friday, February 27, 2026