The International Air Transport Association (IATA) called on Bangladesh to release revenues of foreign airlines totalling $323 million, which were currently being blocked ‘in contravention of international agreements’, immediately.

IATA, representing approximately 320 airlines comprising 83 per cent of global air traffic, stated in a release from Singapore on April 24 that the situation had become severe, with airlines unable to repatriate the funds.

In the same statement, it also urged Pakistan to immediately release $399 million.

‘The timely repatriation of revenues to their home countries is critical for payment of dollar-denominated expenses such as lease agreements, spare parts, overflight fees, and fuel,’ it said, adding that ‘Delaying repatriation contravenes international obligations written into bilateral agreements and increases exchange rate risks for airlines.’

Philip Goh, IATA’s regional vice president for Asia-Pacific, emphasised, ‘Pakistan and Bangladesh must release the more than $720 million that they are blocking with immediate effect so that airlines can continue to efficiently provide the air connectivity on which both these economies rely.’

Regarding Pakistan, he suggested simplifying the onerous process for repatriation, which currently includes the requirement to provide audit certificates and a tax exemption certificate, both of which cause unnecessary delays.

While Bangladesh has more standardised processes, the statement emphasised that aviation needs higher priority from the central bank to facilitate access to foreign exchange.

‘We recognize that governments face challenges in strategically using foreign currencies, but airlines operate on razor-thin margins,’ Goh said, urging both countries to urgently address these matters.