 "Pakistan blocks $225 million in airline funds for repatriation: IATA")
Pakistan has withheld USD 225 million of airline funds for repatriation, the IATA has said, making it one of the top five countries in the world along with Nigeria and Bangladesh, which used the funds as an easy way to shore up their depleted treasuries.
The International Air Transport Association (IATA) on Wednesday warned that the amount of airline funds for repatriation being blocked by governments has risen by more than 25 per cent (USD 394 million) in the last six months.
The IATA represents around 83 per cent of the global air traffic and represents around 300 airlines.
More than 27 countries and territories are blocking funds from repatriation, the IATA said in a press release.
Nigeria tops the list with USD 551 million of blocked funds, followed by Pakistan at USD 225 million and Bangladesh coming in the third position with USD 208 million, it said.
Lebanon (USD 144 million) and Algeria (USD 140 million) are the other two countries to feature in this list, it added.
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IATA has 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," said Willie Walsh, IATA's Director General.
"No business can sustain providing service if they cannot get paid and this is no different for airlines. Air links are a vital economic catalyst. Enabling the efficient repatriation of revenues is critical for any economy to remain globally connected to markets and supply chains," Walsh added.
IATA's warning comes at a time when Pakistan's foreign exchange reserves have fallen to a four-year low of USD 6.72 billion in the week ending on December 2.
The Shehbaz Sharif government has initiated talks with numerous international and multilateral institutions to shore up its reserves.
The Pakistani rupee has depreciated by up to 21 per cent in this calendar year.
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