As a consequence of closing its airspace to Indian aircraft, Pakistan has suffered a loss of over Rs 127 crore to date, according to reports. Pakistan closed its airspace to Indian-registered planes on April 24, 2025, in response to New Delhi's decision to suspend the Indus Waters Treaty following the Pahalgam terror attack.
The PAA, the autonomous government body that manages, operates, and develops the country's airports, confirmed that Islamabad's finances incurred losses exceeding Rs 1,240 crore (PKR 4.1 billion) in just over two months due to the ban. This information was reportedly submitted to the National Assembly by Pakistan's Ministry of Defence.
The PKR 4.1 billion in revenue losses were reported between April 24 and June 30. The ministry reportedly categorised this sum as "revenue shortfalls, not overall financial losses." According to The Dawn, the ministry stated, "While financial losses occur, sovereignty and national defence take precedence over economic considerations." The ban on Indian planes, which was in effect from April 24 to June 30, impacted 100 to 150 daily flights, leading to a reduction in Pakistan's total transit air traffic by nearly 20%.
ALSO READ | Indus Waters Treaty: Done with threats, Pakistan now plans new water storage capacity
After its airspace was closed to Indian-registered aircraft, the Pakistan Airports Authority experienced a significant decline in overflying charges, the report added. Overflying charges, or en-route charges, are the fees that an airline pays a country for the right to fly through its airspace without landing. The cost of these charges depends on factors such as the distance flown within the country's airspace and the aircraft's weight.
ALSO READ:
Meanwhile, another report claimed that Pakistan has extended the airspace closure for Indian flights until August 24. Although Pakistan's airspace is closed to Indian aircraft, Indian carriers have continued to use other international flight routes. However, Pakistan's aircraft are still not allowed to use India's airspace. India’s Minister of State for Civil Aviation stated that Indian airspace would remain closed to Pakistani aircraft until August 23.
The ban is part of various measures taken by the government against Pakistan following the Pahalgam terror attack. "The Notice to Airmen (NOTAM) restricting Pakistani aircraft from entering Indian airspace has been officially extended till 23rd August 2025," Minister of State for Civil Aviation Murlidhar Mohol said. This extension reflects continued strategic considerations and is in line with prevailing security protocols, the minister said in a post on X late on Tuesday. Initially, the ban was to end on May 24 and the same was extended first till June 24 and then till July 24.
