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Foreign airlines operating in Bangladesh are in a financial bind, with approximately USD 323 million of their earnings trapped within the country. The International Air Transport Association (IATA), representing 320 airlines worldwide, has raised concerns about this situation. The funds, which should have been repatriated, remain blocked, hindering airlines’ ability to cover essential dollar-denominated expenses such as lease agreements, spare parts, overflight fees, and fuel. While Bangladesh has streamlined processes, the central bank’s prioritization of foreign exchange access for the aviation sector is crucial. The delay in fund repatriation primarily stems from a shortage of US dollars. The IATA urges the Bangladesh Bank and authorized banks to expedite the remittance of airlines’ funds, emphasizing the critical role these funds play in sustaining operational stability.

The International Air Transport Association (IATA) has issued a warning regarding the escalating issue of blocked funds, which poses a significant threat to airline connectivity in affected markets. In April 2023, the industry's blocked funds surged by 47 percent, reaching $2.27 billion compared to $1.55 billion in April 2022. Among these blocked funds, a substantial amount of $188.2 million remains inaccessible in Pakistan. Willie Walsh, the Director General of IATA, emphasized the critical nature of the problem, stating that airlines cannot continue to operate in markets where they are unable to repatriate their revenues. He called upon governments to collaborate with the industry to resolve this situation and ensure that airlines can sustain vital connectivity, which is crucial for economic growth and job opportunities. The top five countries with the highest amount of blocked funds include Nigeria, Bangladesh, Algeria, Pakistan, and Lebanon. IATA has urged governments to uphold international agreements and treaty obligations to facilitate the repatriation of funds generated from airline activities. This statement from IATA comes after last year's payment backlog in Pakistan, which has consistently placed the country among the top five markets facing obstacles in repatriating airline funds. In March 2023, IATA highlighted the growing challenge faced by carriers operating in Pakistan, as they were unable to repatriate their dues, which are paid in dollars. Philip Goh, the IATA's Asia-Pacific head, noted that if the situation persists, airlines may redirect their valuable aircraft assets to more viable destinations. . . . #CPC23 #ConnectedPakistan #ConnectedToday #IATA #airlines

Top countries for blocking cash repatriation for airlines: 1. Venezuela - $3.8 billion, 2. Nigeria: $551 million, 3. Pakistan: $225 million, 4. Bangladesh: $208 million, 5. Lebanon: $144 million, 6. Algeria: $140 million. CompleXCountries

Pakistan International Airlines (PIA) has faced financial troubles due to severe safety issues and has accumulated losses of billions of rupees. As the airline accrues more damages, the Pakistani government has decided to privatize it, leading to disagreements between different ministries. The airline’s CEO warns that if not restructured, its annual loss could reach Rs259 billion by 2030. To read more visit: https://lnkd.in/d28eJD3T or click the link in bio. To submit your own work, visit https://lnkd.in/eYgVReYM #PIA #Privatization #Financialtroubles #Safetyissues #Government #Restructuring #Aviation #Pakistan #Losses #Disagreements #CEOwarnings #Economiccrisis