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. Strong laws, robust taxation 'musts' for success in anti-tobacco campaign 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.  

International Air Transport Association (IATA) has urged Bangladesh to pay $320 million funds blocked by the government for 40 months. At the same time, Pakistan was also asked to clear its dues of $411 million which has also been held for 40 months. IATA Member Certificate handed over to US-Bangla Airlines Globally, blocked funds have decreased by 28% to $1.8 billion since December 2023. This improvement is largely due to significant clearances in Nigeria and Egypt. However, airlines in both countries faced losses due to currency devaluations, according to a media release on Sunday. The situation is particularly concerning in Bangladesh and Pakistan, IATA said, where airlines are unable to access a combined $731 million in revenue. IATA Director General Willie Walsh urged both countries to prioritize the release of these funds to ensure continued air connectivity, said the release. US-Bangla gets recognition of IATA Airlines “Pakistan and Bangladesh must release the $731 million in blocked funds immediately,” said Walsh. “In Bangladesh, the solution is in the hands of the Central Bank, which must prioritize aviation’s access to foreign exchange in line with international treaty obligations. The solution in Pakistan is finding efficient alternatives to the system of audit and tax exemption certificates, which cause long processing delays,” he added. Nigeria's success story provides a blueprint for resolving this issue. With government intervention, 98% of the previously blocked funds have been cleared, significantly improving the situation for airlines operating in the country. Travel momentum builds as restrictions are lifted: IATA Eight countries are responsible for the lion's share of the remaining blocked funds, with a combined total of $1.6 billion representing 87% of the issue. Pakistan tops the list, followed closely by Bangladesh. Other significant contributors include Algeria ($286 million), XAF zone countries ($151 million), Ethiopia ($149 million), Lebanon ($129 million), Eritrea ($75 million), and Zimbabwe ($69 million). These figures highlight the specific challenges faced by airlines operating in these regions.