DUBAI: The International Air Transport Association (IATA) on Tuesday urged Pakistan and Bangladesh to remove barriers to airlines’ repatriation of ticket revenues after Nigeria released most of its frozen funds.
Of the airline’s total frozen funds of $1.8 billion, Pakistan and Bangladesh are owed a combined $731 million, according to the World Trade Organization.
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 aviation business,” said Xie Xingquan, IATA’s regional vice president for North Asia.
In Pakistan, delays in requirements for airlines to submit audits and tax exemption certificates are the main problem, he said. “In Bangladesh, I think the main problem 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.
Egypt has also approved the lifting of frozen funds, allowing it and Nigeria to reduce their overall backlog by about 28 percent since December last year, IATA said.
Lebanon, Ethiopia and Algeria are also among countries that have yet to repay their debts to airlines, according to IATA.
Published in Dawn on June 5, 2024
