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Pakistan Hindering Nearly $400 Million of Airline Revenues, Reports IATA

Pakistan Hindering Nearly $400 Million of Airline Revenues, Reports IATA

The International Air Transport Association (IATA) has urged Pakistan to promptly release airline revenues held in violation of international agreements. According to IATA, the situation has become critical as airlines are unable to repatriate over $720 million in revenues earned in Pakistan and Bangladesh markets.

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Philip Goh, IATA’s Regional Vice President for Asia-Pacific, emphasized the urgency of releasing these funds, stating that timely repatriation is essential for airlines to cover dollar-denominated expenses such as lease agreements, spare parts, overflight fees, and fuel. He highlighted that delaying repatriation goes against international obligations outlined in bilateral agreements and increases exchange rate risks for airlines. IATA called on Pakistan to streamline the complex process for revenue repatriation, which currently includes requirements for audit certificates and tax exemption certificates, causing unnecessary delays.

Goh acknowledged the challenges governments face in managing foreign currencies strategically but stressed the importance of airlines being able to operate efficiently by prioritizing markets based on their confidence in receiving timely revenues. He highlighted that reduced air connectivity limits economic growth, foreign investment, and exports, emphasizing the need for urgent solutions given the significant sums involved in both markets.