Pakistan Blocking Almost $400 Million of Airline Revenues, Says IATA
By
April 26, 2024
The International Air Transport Association (IATA) is urging Pakistan to release airline revenues promptly, as they’re being held against international agreements. According to IATA, airlines are struggling to bring back over $720 million they’ve earned in Pakistan and Bangladesh.
This delay is causing problems as airlines need this money to cover expenses like lease agreements, spare parts, and fuel. Philip Goh, IATA’s Regional Vice President for Asia-Pacific, stressed the importance of releasing the blocked funds to ensure smooth air connectivity.
Additionally, IATA suggests that Pakistan should simplify the process for repatriation, which currently involves providing audit certificates and tax exemption certificates, causing unnecessary delays. Goh highlighted the impact of reduced air connectivity on economic growth, foreign investment, and exports, emphasizing the need for urgent solutions.
