IATA calls upon Pakistan, Bangladesh to release blocked funds
The International Air Transport Association (IATA) has called upon Pakistan and Bangladesh to ease restrictions on airlines' ability to repatriate ticket revenues, following Nigeria's recent release of the majority of blocked funds. Pakistan and Bangladesh collectively hold USD731 million of the total global sum of USD1.8 billion in blocked airline funds, as reported by the global trade body. Various nations have encountered challenges in repatriating funds due to currency devaluations, a shortage of US dollars, or bureaucratic hurdles.
Xie Xingquan, IATA's regional vice-president for North Asia, emphasized the importance of prioritizing the release of airlines' funds for economic and operational reasons. Delays in Pakistan primarily stem from requirements for airlines to provide audit and tax exemption certificates. In Bangladesh, the main issue revolves around a shortage of US dollars for foreign transactions.
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Nigeria has made significant progress by clearing 98% of its blocked funds, amounting to USD850 million as of June 2023, according to IATA. While welcoming this development, IATA's Director General Willie Walsh urged the government to clear the remaining USD19 million and maintain a focus on supporting the aviation sector.
Currency devaluation in Nigeria had posed challenges for airlines in repatriating revenues in US dollars, leading to operational adjustments and, in one case, a suspension of operations to Nigeria.
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Egypt has also resolved its blocked funds issue, contributing to a 28% reduction in the total backlog since December of the previous year, alongside Nigeria's efforts. However, Lebanon, Ethiopia, and Algeria are among the countries that still need to release funds owed to airlines, according to IATA.
Source: https://borneobulletin.com.bn/