KARACHI: The International Air Transport Association (IATA) on Sunday urged Pakistan and Bangladesh to release airline revenues amounting to $731 million to ensure air carriers can continue to provide essential air connectivity.
Pakistan and Bangladesh are on top of a list of eight countries holding 87 percent of the total blocked airline funds for the last 40 months, according to the IATA.
The situation has become “severe,” with airlines unable to repatriate $411 million revenues earned in Pakistan and $320 million in Bangladesh.
“In Bangladesh, the solution is in the hands of the Central Bank, which must prioritize aviation’s access to foreign exchange in line with international treaty obligations,” IATA Director-General Willie Walsh said in a statement.
“The solution in Pakistan is finding efficient alternatives to the system of audit and tax exemption certificates, which cause long processing delays.”
Others holding airline revenues included Algeria, Ethiopia, Lebanon, Eritrea, Zimbabwe and XAF Zone.
However, the IATA reported a 28 percent decrease in the amount of airline funds blocked from repatriation by governments. It said the total blocked funds at the end of April stood at approximately $1.8 billion, down by $708 million since December 2023.
The main driver of the reduction was a significant clearance of funds blocked in Nigeria, according to the global airline body. Egypt also approved the clearance of its significant accumulation of blocked funds.
The IATA reiterated the call for governments to remove all barriers to airlines repatriating their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations.
“The reduction in blocked funds is a positive development. The remaining $1.8 billion, however, is significant and must be urgently addressed,” Walsh said.
“The efficient repatriation of airline revenues is guaranteed in bilateral agreements. Even more importantly, it is a pre-requisite for airlines— who operate on thin margins— to be able to provide economically critical connectivity. No business can operate long-term without access to rightfully earned revenues.”
Global airline body urges release of $731 million airline funds held by Pakistan, Bangladesh
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Global airline body urges release of $731 million airline funds held by Pakistan, Bangladesh
- Pakistan and Bangladesh are on top of a list of eight countries holding 87 percent of the total blocked airline revenues
- International Air Transport Association calls on governments to remove all barriers to airlines repatriating funds
Customs seize contraband, vehicles worth $1.1 million in Pakistan’s southwest
- The contraband goods, including branded cigarettes and mobile phones, were seized in multiple operations in the Balochistan province
- Smugglers have long exploited the southwestern province, which shares a porous border with Iran and Afghanistan, for illicit trade
KARACHI: Pakistan Customs seized contraband goods and vehicles in multiple anti-smuggling operations in the southwestern Balochistan province, the Federal Board of Revenue (FBR) said on Sunday.
In an intelligence-based operation (IBO), Customs officials seized 508 cartons (25,400 sticks) of assorted branded smuggled cigarettes valued at Rs200 million ($713,891), according to the FBR.
In separate operations, Quetta customs authorities seized a large number of smuggled mobile phones and 13 non-custom-paid (NCP) vehicles, with a combined assessed value of Rs117 million ($417,626).
“All seized items have been taken into official custody and further legal proceedings are being initiated under the relevant provisions of the Customs Act,” the FBR said in a statement.
It did not elaborate whether any arrests were made during the seizures.
The development comes amid Pakistan’s crackdown on smuggling of goods to support its over $400 billion economy. Smugglers have long exploited Pakistan’s Balochistan province, which shares a porous border with Iran and Afghanistan, for illicit trade of fuel, vehicles and other goods.
Earlier this month, Pakistan Customs seized narcotics, smuggled goods and vehicles worth a total of Rs1.38 billion [$4.92 million] in separate operations in Balochistan, according to the FBR.
“These operations are part of the [customs] collectorate’s intensified enforcement drive aimed at curbing smuggling and dismantling illegal trade networks,” the FBR said on Dec. 16.
The FBR on Sunday reaffirmed its unwavering commitment to curbing smuggling and illicit trade to safeguard the national economy.
