The International Air Transport Association (IATA), a trade body of global airlines, on Tuesday again urged Pakistan to remove barriers to airlines repatriating ticket revenues.
“Pakistan and Bangladesh are ranked highest in the world in terms of funds which are blocked. So I would really encourage these countries to make sure the airlines get these funds,” said Xie Xingquan, IATA’s regional vice-president for North Asia.
“I am happy to see that some countries have already taken some actions – to give this a priority allowing airlines to take funds back to their home countries,” he added.
According to the world aviation body, Pakistan and Bangladesh collectively owe over $700 million in blocked airline funds.
The stock of State Bank of Pakistan (SBP)-held reserves currently stand at just above $9 billion, around two months of import cover.
In April, IATA had called on Pakistan to immediately release airline revenues that are being held in contravention of international agreements.
“The situation has become severe with airlines unable to repatriate over $720 million ($399 million in Pakistan and $323 million in Bangladesh) of revenues earned in these markets,” the global aviation body said in a statement, back then.
“The timely repatriation of revenues to their home countries is critical for payment of dollar denominated expenses such as lease agreements, spare parts, overflight fees, and fuel,” Philip Goh, IATA’s Regional Vice President for Asia-Pacific, was quoted as saying.
The IATA, which represents some 320 airlines comprising 83% of global air traffic, also urged Pakistan to simplify the “onerous process” for repatriation.
IATA says blocked airline funds by countries including Pakistan threaten connectivity
Pakistan’s $350-billion economy faces a chronic balance of payment crisis, with nearly $24 billion to repay in debt and interest over the next fiscal year.
Pakistan is also seeking a new long-term, larger International Monetary Fund (IMF) loan, a follow-up to its Stand-By Arrangement reached last year.
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