ISLAMABAD: The global aviation industry has witnessed a rapid surge in the level of blocked funds in countries like Pakistan, warned the International Air Transport Association (IATA) on Sunday, adding the situation was beginning to jeopardize airline connectivity in the affected markets.
IATA represents the interests of airlines worldwide and serves as a platform for collaboration and coordination among them. It also enables international air carriers to address common challenges by providing them a unified voice when engaging with governments, regulatory bodies, and other stakeholders.
“The industry’s blocked funds have increased by 47 percent to $2.27 billion in April 2023 from $1.55 billion in April 2022,” stated IATA in a press release.
It named Pakistan among the top five countries accounting for 68 percent of the blocked funds, along with Nigeria, Bangladesh, Algeria, and Lebanon.
Earlier this year in April, IATA described the business environment in Pakistan as “very challenging,” stating that international airlines were struggling to repatriate upwards of $290 million from the South Asian state and could consider diverting their operations elsewhere.
According to its recent statement, the blocked amount in Pakistan is mentioned as $188.2 million.
“Airlines cannot continue to offer services in markets where they are unable to repatriate the revenues arising from their commercial activities in those markets,” said Willie Walsh, IATA’s Director General. “Governments need to work with the industry to resolve this situation so that airlines can continue to provide the connectivity that is vital to driving economic activity and job creation.”
IATA urged governments to abide by international agreements and treaty obligations to enable airlines to access these funds arising from the sale of tickets, cargo space, and other related activities.
