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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
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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 
 
¶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