The Travel Agents Association of Pakistan (TAAP) has requested the federal government and the State Bank to allow remittances to overseas airlines as soon as possible since the current scenario is harming the country’s travel and tourism business.
In an interview, Nadeem Sharif, the erstwhile TAAP chairman, and member executive board warned that it would result in thousands of lost jobs in the Pakistani travel business.
This industry includes about 2,200 International Air Transport Association (IATA) certified and 3,000 non-IATA companies, as well as cargo agents, airline employees, and ground handling companies.
As per the IATA data, about $225 million has yet to be returned to airlines due to a lack of authorization from the State Bank of Pakistan (SBP).
In December, IATA issued a warning to five nations, including Pakistan, about the non-repatriation of airline cash frozen by their governments. The association asked governments to remove all barriers to airlines’ return of earnings from ticket sales and other operations in accordance with international treaties and agreements.
Sharif noted that the sector is already dealing with currency volatility and that the non-repatriation of airline cash is escalating the issue. According to an industry insider, tickets are now being offered from locations outside of Pakistan, and Pakistani travelers are being forced to use hawala and hundi channels to acquire tickets since airlines are afraid to sell them through conventional channels.
As per TAAP Secretary General Amanullah Suleman, the sum of money involved in the non-reimbursement of airline funds is growing with time. As a result, several airlines are considering lowering their frequency and giving more limited tickets, which might have a detrimental influence on Pakistan’s economy and population.
Suleman argues that the situation is becoming a crisis that, if not solved immediately, would worsen. The IATA has also voiced alarm about the situation, saying that no industry can survive it. Suleman has urged the government to engage with international airlines regarding the time period for remittances and remedy the issue.
Pakistan is at the brink of default with only two weeks of Foreign reserves. There is hardly any foreign reserves for Fuel, LNG, pharmaceutical raw materials and medical emergency equipment. With such dire situation, remittance to airlines will be sucidal for Pakistan