Identifier
Created
Classification
Origin
08ISLAMABAD3139
2008-09-26 12:57:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Islamabad
Cable title:  

SEPTEMBER 20 MARRIOTT BOMBING: EFFECT ON LOCAL BUSINESS

Tags:  PGOV ETRD ECON EINV PK 
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ZNR UUUUU ZZH
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FM AMEMBASSY ISLAMABAD
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INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
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RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
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RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL
RHWSMRC/USCINCCENT MACDILL AFB FL
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RUEHNE/AMEMBASSY NEW DELHI 3831
RUEHLO/AMEMBASSY LONDON 8784
RUEHML/AMEMBASSY MANILA 3014
RUEHKP/AMCONSUL KARACHI 0395
RUEHLH/AMCONSUL LAHORE 6137
RUEHPW/AMCONSUL PESHAWAR 4963
UNCLAS SECTION 01 OF 02 ISLAMABAD 003139 

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV ETRD ECON EINV PK
SUBJECT: SEPTEMBER 20 MARRIOTT BOMBING: EFFECT ON LOCAL BUSINESS

UNCLAS SECTION 01 OF 02 ISLAMABAD 003139

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV ETRD ECON EINV PK
SUBJECT: SEPTEMBER 20 MARRIOTT BOMBING: EFFECT ON LOCAL BUSINESS


1. (SBU) Summary: The Marriott hotel bombing on September 20 caused
significant damage to an office building directly adjacent to the
hotel, which contained primarily information technology (IT)
companies, including local offices of some large American and
multinational corporations. Other businesses in a nearby commercial
area were also affected. The affected businesses have adapted
quickly, moving their workers to other offices or alternate
locations. The Pakistani business community is once again
demonstrating its resilience, but many business people privately
worry that this latest terrorist incident will further deter foreign
investment and sales. End summary.


2. (SBU) The Evacuee Trust Complex (ETC),also known as Software
Technology Park 2, directly adjacent to the Marriott hotel, houses a
large number of international and domestic information technology
(IT) firms as well as offices of the Pakistan Software Export Board
(PSEB) and the Ministry of IT (MOIT). Overall, the building housed
approximately 3000 workers and over 45 businesses. In the September
20 suicide bombing at the Marriott Hotel, the ETC also sustained a
large amount of damage, including broken windows, fallen ceiling
tiles, damaged data cables and electrical wiring and damaged air
conditioning systems. Seven people were killed, including three
from private Pakistani companies and four building security
personnel. According to Managing Director of the PSEB Talib Baloch,
the building is structurally sound and in his personal opinion could
be refurbished for occupation within a month. Opinions vary,
however, on how quickly refurbishment will happen. Microsoft's
Public Sector Lead Malik Imran Ijaz thought it might take three
months, and Cisco's Country General Manager Aamir Matin thought it
would take at least a year due to the bureaucracy that would be
involved in getting the work approved.


3. (U) American companies affected by the ETC damage include
Microsoft, Cisco, Motorola, Kestral (the local representative of
Lockheed Martin),AES and LMK Resources (founded by a
Pakistani-American with headquarters in Houston, TX). Oracle
suffered some damage but was not incapacitated. Cisco and LMKR's
offices were rendered completely unusable due to blast damage and
are unusable until the building is refurbished. AES is located near
by and suffered minor structural damage. Microsoft's offices were
on the far side of the building from the Marriott and suffered less
damage, but because of damage to voice and data lines, air
conditioning, electricity and water, those offices are also unusable
for the time being.


4. (U) In the wake of the damage, the companies have had to find
alternate workspaces for their employees. Several companies had
other offices in Islamabad or Rawalpindi and others are now
searching for new spaces. In some cases, such as Cisco or
Microsoft, employees have full capacity to work from home. The two
government agencies, PSEB and MOIT, also have office space elsewhere
in Islamabad that they will use in the short term to house displaced
workers.


5. (SBU) Other businesses in Islamabad were also affected by the
blast. Telenor and Mobilink, two of the largest cellular operators
in Pakistan maintained telecommunications equipment on the roof of
the Marriott and have lost some level of network connectivity.
Mobilink's Chief Financial Officer was also killed in the blast.
Many businesses in the Supermarket commercial area in Islamabad's
sector F-6, less than a mile from the Marriott, also suffered
numerous broken windows and doors.


6. (SBU) Comment: While it is too early to put a value in hard
currency on the bomb damage, for those businesses housed in the ETC
or in buildings near the Marriott, the financial impact will not be
negligible. Nonetheless, local Pakistani business people are once
again showing how resilient they are in the face of adversity. Most
of the ETC resident companies had excellent back-up and disaster
recovery plans. Data losses - one of an IT company's most critical
commercial assets - were minimal. They have also displayed
creativity and efficiency in moving their operations to alternate
locations. Representatives of some companies have expressed
frustration to EconOffs over the security situation saying it scares
off investment and impedes cooperation with American or European

ISLAMABAD 00003139 002 OF 002


colleagues who are increasingly afraid of traveling to Pakistan but
they insist that will continue to operate here and see enormous
potential in the market if the security situation can improve. End
comment.

PATTERSON