According to the international airline group IATA, Pakistan has withheld $225 million in airline debt, making it one of the top nations preventing the business from remitting money to its home country.
In April, Pakistan and Sri Lanka were designated as “blocked money” nations. In 2021, the two nations were being kept an eye on and marked as “watch list countries” by IATA. The International Air Transport Association (IATA), which represents about 300 airlines accounting for 83 percent of global air traffic, said in a statement on Wednesday that the amount of airline funds for repatriation being blocked by governments has increased by more than 25%, or $394 million, in the last six months to close to $2 billion.
More than 27 nations and territories prohibit the repatriation of cash for airlines. With $551 million in blocked money, Nigeria leads the list, followed by Pakistan ($225 million), Bangladesh ($208 million), Lebanon ($144 million), and Algeria ($140 million).
Venezuela has been holding on to almost $3.8 billion in airline cash since 2016, when the nation last permitted limited repatriation, and is not represented in these markets. IATA called on governments to remove all barriers to airlines repatriating their revenues from ticket sales and other activities, in line with international agreements and treaty obligations.
Preventing airlines from repatriating funds may appear to be an easy way to shore up depleted treasuries, but ultimately the local economy will pay a high price, said Willie Walsh, IATAs director general.
No business can sustain providing service if they cannot get paid, which is no different for airlines. Air links are a vital economic catalyst. Enabling the efficient repatriation of revenues is critical for any economy to remain globally connected to markets and supply chains, he said.