Pakistan blocks $188.2m funds of airlines

June 05, 2023 (MLN): Pakistan has blocked about $188.2 million for the airlines due to economic woes, which is 16.3% lesser than the $225m blocked in December 2022.

Pakistan is amongst five nations in the world that failed to make summers to international airlines.

Other countries, such as Nigeria, Bangladesh, Algeria, and Lebanon have blocked $812.2m, $214.1m, $196.3m, and $141.2m, respectively.

The International Air Transport Association (IATA) warned that rapidly rising levels of blocked funds are a threat to airline connectivity in the affected markets.

Furthermore, the total funds blocked now tally at $2.27 billion up by 47% YoY as compared to $1.55bn in April 2022, it added.

Willie Walsh, IATA’s Director General said that airlines cannot continue to offer services in markets where they are unable to repatriate the revenues arising from their commercial activities in those markets.

Governments need to work with industry to resolve this situation so airlines can continue to provide the connectivity that is vital to driving economic activity and job creation, he emphasized.

The IATA urged governments to abide by international agreements and treaty obligations to enable airlines to repatriate these funds arising from the sale of tickets, cargo space, and other activities in accordance with international agreements.

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