The International Air Transport Association (IATA) has said $1.7 billion in airline funds remain blocked globally, with Bangladesh accounting for $196 million as of October, 2024.

This figure shows a significant improvement from $320 million reported in April, showing progress in reducing barriers for airlines in the country.

Bangladesh ranks third on IATA's list of countries with the highest blocked airline funds, following Pakistan ($311 million) and the XAF Zone countries in Central Africa ($235 million), according to IATA report published on Monday.

Blocked airline funds refer to money that an airline is required to set aside and cannot use for other business purposes, typically due to regulatory requirements, legal agreements, or financial obligations.

Despite the progress, IATA said that the Central Bank of Bangladesh must continue prioritising airlines’ access to foreign exchange to meet international treaty obligations.

Globally, nine countries, including Bangladesh, account for 83% of the blocked funds, totaling $1.43 billion. Pakistan, at the top of the list, reduced its blocked funds from $411 million in April to $311 million in October, citing delays caused by tax and audit exemptions.

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While Bangladesh made strides, IATA pointed out an increase in blocked funds in regions like the XAF Zone (+$84 million) and Mozambique (+$84 million). Africa remains a significant concern, holding nearly 59% of the global blocked funds, approximately $1 billion.

“Governments must remove all barriers for airlines to repatriate their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations,” said Willie Walsh, IATA’s Director General.

“No country wants to lose aviation connectivity, which drives economic prosperity. But if airlines cannot repatriate their revenues, they cannot be expected to provide a service. Economies will suffer if connectivity collapses. So, it is in everyone’s interest, including governments, to ensure that airlines can repatriate their funds smoothly,” said Walsh.