The International Air Transport Association on Tuesday called on Pakistan and Bangladesh to remove barriers to airlines repatriating ticket revenues after Nigeria released most of its frozen funds.
According to the World Trade Organization, Pakistan and Bangladesh collectively owe $731 million of the airline’s total frozen funds of $1.8 billion.
Some countries are having difficulty repatriating funds due to depreciating currencies, a shortage of US dollars and bureaucracy.
“We encourage airlines to prioritise funding as this is crucial for their economic activity and for the business of aviation,” said Xie Xingquan, IATA’s regional vice president for North Asia.
In Pakistan, delays in the requirement for airlines to submit audit and tax exemption certificates have been a major problem, he said.
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“I think the main problem in Bangladesh is a shortage of US dollars for foreign exchange,” Xie said.
IATA said on Sunday that Nigeria has cleared 98 percent of its frozen funds amounting to $850 million as of June 2023.
“We are on the right path and we call on the Government to clear the remaining $19 million and continue to prioritise the aviation industry,” IATA director general Willie Walsh said.
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The airline had been facing problems repatriating its US dollar-denominated earnings from Nigeria due to the devaluation of the local currency.
IATA said the large amount of frozen funds had led some airlines to scale back operations, with one airline suspending services to Nigeria.
Egypt has also approved the clearing of frozen funds, and together with Nigeria, the total backlog has been reduced by about 28 percent since December last year, IATA said.
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Lebanon, Ethiopia and Algeria are also among countries that have yet to repay their debts to airlines, according to IATA.
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