Pakistan blocked $225mn in airline funds from repatriation: IATA

Pakistan stands among the top markets where airline funds have been blocked from repatriation, according to International Air Transport Association (IATA).

The trade body of world’s airlines said in a press release on Wednesday that Pakistan is among the top five nations in the world that have blocked airline funds (excluding Venezuela).

Among other countries, Nigeria has blocked $551 million, while Venezuela has to settle $3.8 billion of airline funds that have been blocked from repatriation since 2016. The list also includes 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,”

The development comes as Pakistan faces depleting foreign exchange reserves.

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.