AVN 65.31 Decreased By ▼ -0.86 (-1.3%)
BAFL 30.25 No Change ▼ 0.00 (0%)
BOP 4.63 Decreased By ▼ -0.10 (-2.11%)
CNERGY 3.89 Decreased By ▼ -0.12 (-2.99%)
DFML 13.50 Decreased By ▼ -0.60 (-4.26%)
DGKC 42.15 Decreased By ▼ -1.54 (-3.52%)
EPCL 46.13 Increased By ▲ 1.48 (3.31%)
FCCL 11.45 Decreased By ▼ -0.38 (-3.21%)
FFL 5.19 Increased By ▲ 0.22 (4.43%)
FLYNG 5.82 Decreased By ▼ -0.28 (-4.59%)
GGL 10.04 Decreased By ▼ -0.34 (-3.28%)
HUBC 63.21 Increased By ▲ 0.91 (1.46%)
HUMNL 5.73 Decreased By ▼ -0.12 (-2.05%)
KAPCO 27.81 Increased By ▲ 0.26 (0.94%)
KEL 2.15 Decreased By ▼ -0.06 (-2.71%)
LOTCHEM 25.37 Decreased By ▼ -1.23 (-4.62%)
MLCF 21.65 Decreased By ▼ -0.87 (-3.86%)
NETSOL 84.95 Decreased By ▼ -1.25 (-1.45%)
OGDC 86.64 Increased By ▲ 0.37 (0.43%)
PAEL 10.96 Decreased By ▼ -0.31 (-2.75%)
PIBTL 4.21 Decreased By ▼ -0.07 (-1.64%)
PPL 78.65 Decreased By ▼ -1.43 (-1.79%)
PRL 13.61 Decreased By ▼ -0.05 (-0.37%)
SILK 0.88 Decreased By ▼ -0.02 (-2.22%)
SNGP 41.00 Decreased By ▼ -0.75 (-1.8%)
TELE 6.01 Decreased By ▼ -0.20 (-3.22%)
TPLP 16.02 Decreased By ▼ -0.25 (-1.54%)
TRG 111.89 Decreased By ▼ -0.66 (-0.59%)
UNITY 14.01 Decreased By ▼ -0.34 (-2.37%)
WTL 1.14 Decreased By ▼ -0.06 (-5%)
BR100 4,026 Decreased By -48.6 (-1.19%)
BR30 14,402 Decreased By -123 (-0.85%)
KSE100 40,451 Decreased By -396 (-0.97%)
KSE30 15,110 Decreased By -101.7 (-0.67%)
Business & Finance

IATA says Pakistan has blocked $225mn in airline funds from repatriation

  • Airline funds blocked from repatriation in more than 27 countries and territories with Pakistan among the top markets: IATA
Published December 8, 2022
Follow us

Pakistan stood among the top markets where airline funds have been blocked from repatriation, according to the trade association of world's airlines – International Air Transport Association (IATA) – which shared the development in a press release on Wednesday.

The statement added Pakistan has blocked $225 million of airline funds for repatriation. Nigeria has blocked $551 million, while Venezuela has to settle $3.8 billion of airline funds that have been blocked from repatriation since 2016, it said.

The IATA represents some 300 airlines comprising 83% of global air traffic.

As per IATA, Pakistan is among the top five nations in the world that have blocked airline funds (excluding Venezuela).

Other countries on the list are Bangladesh, Lebanon, and Algeria, which have blocked $208 million, $144 million, and $140 million, respectively. The aviation body shared that airline funds are being blocked from repatriation in more than 27 countries and territories.

IATA warned that the amount of airline funds for repatriation being blocked by governments has risen by more than 25% ($394 million) in the last six months.

"Total funds blocked now tally at close to $2 billion," informed IATA, which called on governments to remove all barriers to airlines repatriating their revenues from ticket sales and other activities, in line with international agreements and treaty obligations.

“Preventing airlines from repatriating funds may appear to be an easy way to shore up depleted treasuries, but ultimately the local economy will pay a high price. No business can sustain providing service if they cannot get paid and this is no different for airlines,” Willie Walsh, IATA’s Director General, was quoted as saying in the press release.

“Air links are a vital economic catalyst. Enabling the efficient repatriation of revenues is a critical for any economy to remain globally connected to markets and supply chains,” he added.

The development comes as Pakistan faces depleting foreign exchange reserves, with funds held by the central bank standing at a low level of under $8 billion.

Pakistan is currently engaged in talks with multilateral partners and international lenders for inflows to shore up its forex reserves. A falling level of reserves has already taken toll on the country's currency that has depreciated over 21% this calendar year alone.

The Prime Minister's Office (PMO) has also reportedly sought a report from the Finance Ministry on pending foreign exchange approvals from the State Bank of Pakistan (SBP), well informed sources told Business Recorder.

Earlier, it was also learnt that hundreds of containers carrying perishable food items remained stuck at Karachi port owing to "non-availability of foreign exchange as per commercial banks".

In a letter, a copy of which is available with Business Recorder, the trade association informed the Ministry of Commerce on Tuesday that 417 containers carrying vegetables i.e. onion, ginger and garlic worth approximately $5.5 million or Rs1.23 billion were stuck at various terminals of Karachi sea port owing to non-availability of foreign exchange as per statement of commercial banks.

The consignments were reportedly cleared after the commerce ministry's intervention.

Comments

Comments are closed.

Pakistani Dec 08, 2022 12:59pm
airlines bhi chali jayenge, CMOs bhi chalay jayengay
thumb_up Recommended (0)
Rebirth Dec 08, 2022 01:53pm
Airlines’ funds should be released. Provided that they follow the model of FlyJinnah and form partnerships with local, domestic airlines. There are many in the pipeline waiting to set up shop and begin operations. With each partnership, it will make it easier for us to release funds to that particular airline. Their partner or even subsidiary can provide them a flow of revenue through domestic routes and private, airport lounges. Till that happens, we are unfortunately facing a very severe balance of payments issue. We’re sorry for the delay in your ability to understand how you can maximize your own revenue streams from our market. Till you can make sense of how we can help your business grow, bon voyage.
thumb_up Recommended (0)
Obaid ur rehman Abbasi Dec 09, 2022 01:15am
IATA must also check these airlines who wanted not to pay even local taxes. New legislations must also be done in this respect to give at least benefits to the member States. But never the less the countries must follow the treaties int agreements on the issue. They must understand the fact that If they don't pay back then how Tourism can run and how market will get revenue
thumb_up Recommended (0)

IATA says Pakistan has blocked $225mn in airline funds from repatriation

Imran Khan to contest by-elections on all 33 NA seats: Qureshi

Ishaq Dar announces 35-rupee hike in prices of petrol and diesel

FM Bilawal arrives in Moscow on two-day official visit

India's Adani Group: Hindenburg report intended to create false market

Gulf stocks rise on hope of slower Fed rate hikes

At least 41 killed as passenger coach falls into ravine in Lasbela

6.3 magnitude earthquake jolts Islamabad, surrounding areas

Ten children killed in northwest Pakistan boat capsize

Blinken arrives in Egypt as Middle East violence erupts

Former UN chief calls for climate action over ‘visions’ at COP28