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Global airline association urges Bangladesh and Pakistan to improve revenue repatriation
April 29th 2024
The International Air Transport Association (IATA) has called on the governments of Bangladesh and Pakistan to improve repatriation of revenue earned by airlines in the two markets to their home countries. Read More » The airline association said revenue of US$323 million has been unable to be repatriated from Bangladesh and that Pakistan owed airlines US$399 million. IATA regional vice president Asia-Pacific, Philip Goh, said the delays in the ability of airlines to repatriate revenues contravened international obligations and increased exchange rate risks. “The timely repatriation of revenues [to airlines] to their home countries is critical for payment of dollar denominated expenses such as lease agreements, spare parts, over flight fees and fuel,” Goh said. “Pakistan and Bangladesh must release, with immediate effect, more than US$720 million they are blocking so airlines can continue to efficiently provide the air connectivity on which both these economies rely.” IATA called on Pakistan to simplify onerous processes for repatriation, which require audit certificates and a tax exemption certificate. For Bangladesh, IATA said aviation needed to be a higher priority at the country's Central Bank to facilitate access to foreign exchange.
