International air transport body calls on Bangladesh to unblock $323M in airline funds

The International Air Transport Association (IATA) has urged Bangladesh and Pakistan to release over $720 million in airline revenues currently withheld against international agreements. The blocked funds—$399 million in Pakistan and $323 million in Bangladesh—are crucial for airlines to cover essential costs such as fuel, spare parts, and lease payments. IATA emphasized the economic implications of delayed repatriation, noting that such practices breach bilateral agreements and pose exchange rate risks. The association highlighted the need for streamlined processes in Pakistan and greater prioritization of aviation in Bangladesh's foreign exchange policies, particularly after significant economic strains post-Russia-Ukraine conflict and COVID-19 impacts. Immediate action is advocated to ensure the continuity and expansion of air connectivity essential for economic growth.