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

Congrats to Linux.org for Adopting or Getting Back to IRC
This is the way the Net ought to work and was originally designed to work [...] IRC as a protocol turns 38 this month
 
The Tragedy of Software Developers Making Up Narratives and Making Excuses for Plagiarism (of Their Own Work, Too)
one lingering issue is that many who vote in Debian GRs receive money from slop companies
Evri Makes Us Optimistic About the Collapse of the Slop Pyramid Scheme (Bubble)
Do not be seduced by false promises of "automation" or "intelligence" where only automation may exist but no intelligence at all
Links 24/08/2026: "Journalism Can Help Expose Bad Science And Trigger Real-World Change"; Further Suppression and Censorship in China/HK
Links for the day
Gemini Links 24/08/2026: Soul Mentality, Words to Live by, Mozz.us Gemlog Resumes, Smol Conversations
Links for the day
Today The Register MS Published Greenwashing Spam for the Slop Pyramid Scheme, It Mentions "AI" 29 Times
More people need to talk about the role of the media in this pyramid scheme
Slop Plagiarism and Chatbots Are Killing Evri (They Infuriate and Insult Clients)
Slop destroys companies and leads to misery (miserable clients, time-wasting)
Links 24/08/2026: Re-defining the IndieWeb and "Data Center Backlash Bursts Into the Midterms"
Links for the day
The Issue With Omarchy is the Slop, the Politics Are a Side Issue
Those corporations do not oppose slop, they participate in it
In South Korea, Steady Increases for GNU/Linux
authorities said they would migrate to GNU/Linux or consider moving in that direction
SLAPP Censorship - Part 160 Out of 200: In Astounding Repetition of Last Year, Brett Wilson LLP Deliberately Ignores Holidays of People It is Attacking and Crushes Principles of Access to Justice
Disconnected from the law
Links 24/08/2026: Vision and Skill, Doing Good, Chiperia Project
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, August 23, 2026
IRC logs for Sunday, August 23, 2026
Gemini Links 23/08/2026: Turning 60, PineTime, and Simulation Hypothesis
Links for the day
Will Your "Modern" New Car Still be on the Road in 2060?
Are people now expected to change a car as often as they replace a mobile phone and, if so, how fast would costs add up?
The Sniff Test
Be sceptical of "CoCs"
Cloudflare Sees a Quarter of Requests in China Coming From GNU/Linux Today
Will 23% ever be the average for GNU/Linux rather than a mere peak?
You Can Lose Some Battles and Still Win the War
Winning or losing isn't something for a scoreboard
GNU/Linux Usage Measured at 23% in Russia Today
the average was almost 10%
Things Not to Fear Missing Out on
Life is too short to pay attention to social control media
Gemini Links 23/08/2026: Exercising Again, Tackling Phone Addiction, and Putting Graal Online Back Online
Links for the day
Northern Africa: GNU/Linux Measured at Around 5%
by Clownflare
PIPs and Lawsuits: On the Future of IBM Trying to Spit Out Its Own Staff at Minimal Cost
"I'd rather be laid off than be put on a PIP"
France: GNU/Linux Averaging at 7%, Peaked at 14% Today
When will 14% be the average?
Links 23/08/2026: Water Crises, Illegal Tariffs, and Carney Confronts US Over Patent Imperialism
Links for the day
Links 23/08/2026: Slop "Children's Stories Contain Bizarre Patterns" and "Butterflies at the One Garden"
Links for the day
SLAPP Censorship - Part 159 Out of 200: Telling Courts False Information and Spoon-feeding Them Insults, Hoping or Expecting Them to Repeat These Insults
When lawyers trick courts into repeating something false
Microsoft is in Double Trouble in Singapore
Android+GNU/Linux+ChromeOS are near 20%
The Slop Industry Bribed the Media to Pretend It Has Something New and Revolutionary. Now It Bribes Politicians Too. Anything to Avoid Scrutiny and Regulation.
borrowed money has long been used to bribe the media
"AGI" is Decades Old and It Never Found a Viable Business Model or Real, Actually Useful Use Cases
I keep reminding people of local firms (right here in Manchester) doing the same thing the media now calls "AGI"...
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, August 22, 2026
IRC logs for Saturday, August 22, 2026
Microsoft to Its Workers in April-May: You're Too Old, Go Away. Microsoft in August: Young People, Go Away.
What does this company even sell anymore?
Clownflare Data US-Centric
We are assuming that for national security reasons not many sites in Chinese (or based in China) outsource their traffic to Clownflare
Gemini Links 22/08/2026: Broken Car, Devuan, and Thundermail
Links for the day
Links 22/08/2026: Prince Harry, Elton John and Others Pay High Price for Frivolous Litigation in the UK
Links for the day
'Voluntary' Mass Layoffs at IBM/Red Hat
IBM does not want people to notice what truly goes on there
Another Round of GAFAM Layoffs, This Time Apple
Now Apple "is shutting down an entire Vision Pro team focused on developing gaming features for the mixed-reality headset."
Gemini Links 22/08/2026: The Bodyguard (1992), Minimalism, Backups, and IPFS
Links for the day
SLAPP Censorship - Part 158 Out of 200: Making Alliances With Men Arrested for Strangling Women Was Always a Terrible Strategy
They work for American slop companies
Links 22/08/2026: TikTok Settles With Feds, Harms Caused by Social Control Media Gaining Attention
Links for the day
New Data Shows Microsoft's XBox is Really Dying
XBox is a "burning platform"
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, August 21, 2026
IRC logs for Friday, August 21, 2026