The International Air Transport Association, in a media release issued on Sunday, called on Bangladesh to release revenues of foreign airlines totalling $320 million, which were currently being blocked ‘in contravention of international agreements’, immediately.
In the same statement, it also urged Pakistan to immediately release $411 million.
According to the release, International Air Transport Association has reported a 28 per cent decrease in the amount of airline funds blocked from repatriation by governments of different countries.
The total blocked funds at the end of April stood at approximately $1.8 billion, a reduction of $708 million since December 2023.Â
IATA reiterated the call for governments to remove all barriers to airlines repatriating their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations.
‘The reduction in blocked funds is a positive development. The remaining $1.8 billion, however, is significant and must be urgently addressed. The efficient repatriation of airline revenues is guaranteed in bilateral agreements. Even more importantly, it is a pre-requisite for airlines—who operate on thin margins—to be able to provide economically critical connectivity. No business can operate long-term without access to rightfully earned revenues,’ said Willie Walsh, IATA’s director general.
The main driver of the reduction was a significant clearance of funds blocked in Nigeria. Egypt also approved the clearance of its significant accumulation of blocked funds.
Regarding the situation in Bangladesh and Pakistan, the release states that the situation has become severe in these two countries with airlines unable to repatriate $731 million — $411 million in Pakistan and $320 million in Bangladesh — of revenues earned in these markets.
‘Pakistan and Bangladesh must release the $731 million in blocked funds immediately to ensure airlines can continue providing essential air connectivity. In Bangladesh, the solution is in the hands of the Central Bank, which must prioritise aviation’s access to foreign exchange in line with international treaty obligations. The solution in Pakistan is finding efficient alternatives to the system of audit and tax exemption certificates, which cause long processing delays,’ said Walsh.
