Pakistan urged to
immediately release withheld $400m
According to a statement by the International Air Transport
Association (IATA) on Thursday, Pakistan is urged to promptly release airline
revenues being withheld in violation of international agreements. IATA
emphasized the severity of the situation, noting that airlines are unable to
repatriate over $720 million in revenues earned in Pakistan and Bangladesh,
with $399 million in Pakistan and $323 million in Bangladesh.
Philip Goh, IATA’s Regional Vice President for Asia-Pacific,
stressed the critical importance of timely revenue repatriation for covering
dollar-denominated expenses such as lease agreements, spare parts, overflight
fees, and fuel.
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facing a threat to airline connectivity due to blocked funds: IATA
Delaying repatriation not only breaches international obligations
outlined in bilateral agreements but also heightens exchange rate risks for
airlines. Goh called for the immediate release of the blocked funds by Pakistan
and Bangladesh to ensure airlines can sustain efficient air connectivity,
crucial for both economies.
The statement also highlighted the need for Pakistan to streamline
the complex process for revenue repatriation, which currently involves
cumbersome requirements such as audit certificates and tax exemption
certificates, leading to unnecessary delays.
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blocked $225mn in airline funds from repatriation: IATA
Goh acknowledged the challenges governments face in strategically
managing foreign currencies but emphasized the importance for airlines to
prioritize markets based on their confidence in timely revenue remittance.
Reduced air connectivity, resulting from delayed revenue repatriation, hampers
economic growth, foreign investment, and exports. Urgent solutions are
imperative given the substantial sums involved in both markets.
Source: Pro Pakistani