After India suspended the Indus Water Treaty on April 23 in response to the gruesome Pahalgam terror attack, Pakistan closed its airspace to Indian-registered aircraft. However, according to a local media report, Islamabad has suffered massive financial losses after the shutdown as the Pakistan Airports Authority (PAA) lost over Rs. 1,240 crore (PKR 4.1 billion) in over two months.
According to ANI, Dawn reported the figure of losses, citing a statement by the Pakistan Ministry of Defence in the National Assembly on Friday. Furthermore, as per the report, the closure came into effect from April 24, when Islamabad withdrew overflight permission for all Indian-registered aircraft and those operated, owned, or leased by Indian carriers.
The closure of airspace has backfired on the Pakistani economy. According to the Dawn, the revenue of PAA from overflying charges plunged between April 24 and June 30, nearly affecting 100-150 Indian aircraft daily and slashing Pakistan’s transit air traffic by almost 20 percent.
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Pakistani Ministry Admits Financial Losses
The Pakistani Defence Ministry has admitted the financial losses but attempted to justify the decision to close airspace for all Indian aircraft and said, “Sovereignty and national defence take precedence over economic considerations.”
Meanwhile, the officials also claimed that the measures issued by Notices to Airmen (NOTAMs) were for “strategic and diplomatic” reasons.
According to the ministry’s data, PAA’s average daily overflight revenue in 2019 was 508,000 dollars, compared to 760,000 dollars in 2025, meaning the ban is costing Pakistan far more now than during the previous standoff, Dawn reported.
Pakistan Airspace Closure
Pakistan’s airspace is open to all except Indian airlines and aircraft, and the ban has been extended twice and is now set to last until the last week of August.
Furthermore, Indian carriers continue unaffected on other international routes, while Pakistani airlines are still barred from entering Indian airspace.
India-Pakistan Tensions
On April 22, terrorists gunned down 25 Indian citizens and one Nepali citizen in Jammu and Kashmir’s Pahalgam. The incident sent shockwaves through the nation. The responsibility for the attack was claimed The Resistance Front (TRF), an offshoot of Pakistan-based Lashkar-e-Taiba (LeT), however, later it distanced itself from the incident.
After this, New Delhi took several diplomatic measures against Islamabad, and the airspace closure was a part of the same. India banned all Pakistani-operated, owned, or leased aircraft, including military flights, from entering Indian skies from April 30.
(with ANI inputs)