Pakistan still withholding $83 million in airline funds, says IATA

Despite a sharp decline from last year, Pakistan continues to withhold airline revenues as IATA urges governments to honour repatriation agreements and support global connectivity

Struggling with a deep economic crisis and crippling foreign exchange shortages, Pakistan continues to block $83 million in airline funds, delaying the repatriation of revenues that international carriers earn from ticket sales and other operations.

 

In its latest update released on the sidelines of its annual general meeting in New Delhi, IATA said governments around the world are collectively withholding $1.3 billion in airline funds as of April, down from $1.7 billion in October 2024. Just 10 countries are responsible for over 80 per cent of the total, with Pakistan being among them.

 

Pakistan's foreign exchange reserves remain under pressure amid a prolonged economic crisis, and capital controls — such as restrictions on dollar repatriation — have become a key policy tool. These measures, while aimed at stabilising the economy, are affecting the ability of foreign airlines to operate smoothly and repatriate their legitimate earnings.

 

“Ensuring the timely repatriation of revenues is vital for airlines to cover dollar-denominated expenses and maintain their operations,” said IATA director general Willie Walsh.

 

“Delays and denials violate bilateral agreements and increase exchange rate risks… Governments must realise that it is a challenge for airlines to maintain connectivity when revenue repatriation is denied or delayed,” he added. 

 

Pakistan and Bangladesh — both of which were among the top five blocked-fund countries in October 2024 — have made progress. Pakistan’s backlog has reduced from $311 million to $83 million, while Bangladesh has cleared nearly half its dues, bringing the total down to $92 million. 

 

IATA stressed that continued restrictions pose financial and operational challenges to international carriers.

 

IATA reiterated its call for all governments to comply with international agreements and ensure airlines have reliable access to their revenues. 

 

“Economies and jobs rely on international connectivity,” the association said.

 

Mozambique is now the top country holding back airline funds, with $205 million blocked — up sharply from $127 million in October 2024. Other countries on the list include Algeria ($178 million), Lebanon ($142 million), Angola ($84 million), and Zimbabwe ($68 million). Africa and West Asia collectively account for $1.1 billion of the total blocked funds.