Due to lack of money, now the time has come to stop the airlines in Pakistan. The International Air Transport Association (IATA) has warned that airline connectivity in several other countries, including Pakistan, is at risk due to the fund block.
In April 2023, up to 47 percent of funds were blocked in the sector, the Global Airline Association said in a statement on Sunday. The amount of $ 1.55 billion was stuck in April 2022, so this year it has increased to $ 2.27 billion. Apart from Pakistan, IATA has also issued this warning to Bangladesh, Nigeria, Algeria, and Lebanon.
“Airlines of certain countries, including Pakistan, may not continue to serve markets where they are unable to make back revenue from commercial activities in those markets,” IATA said. Willie Walsh, director general of the airlines association, urged governments to address the situation so airlines can continue connectivity.
The organization says that it is very important for economic activities and employment generation. $812.2 million has been blocked for Nigeria, $214.1 million for Bangladesh, $196.3 million for Algeria, $188.2 million for Pakistan, and $141.2 million for Lebanon.
Pakistan is currently facing a huge economic crisis. The country’s foreign exchange reserves have reached dangerous levels. Because of this, there has been a shortage of essential commodities and their prices have skyrocketed.
Companies are grappling with delays in importing currency or converting it. Experts have warned that the country is now on the brink of default. Air travel has also been affected due to the situation in Pakistan.
Airlines sell tickets in the local currency, but dollars are needed to pay for expenses such as fuel. In such a situation, the situation has become more difficult for Pakistan.