The Pakistan Airports Authority (PAA) has informed the National Assembly that it suffered Rs4.1 billion in revenue losses following the closure of airspace to Indian airlines.
The closure was implemented after India’s unilateral suspension of the Indus Waters Treaty (IWT) on April 23, 2025, and Pakistan’s subsequent withdrawal of overflight permissions for all Indian-registered aircraft starting April 24, 2025. The restrictions intensified during the military operation Marka-e-Haq from May 6 to 12, 2025, when India also closed its airspace, further exacerbating the situation.
Pakistan’s skies remained largely restricted, affecting between 100 and 150 Indian flights daily. The revenue loss was particularly severe as Pakistan’s overflight fees, which had previously brought in approximately $50,800 daily, were reduced by nearly 20%.
In a written response to the National Assembly, Defence Minister Khawaja Asif justified the decision, calling it a “costly but essential sacrifice.”
He explained that the airspace closure was crucial to safeguard civilian lives, protect critical infrastructure, and support military operations amid escalating tensions with India. He stressed that national security concerns took precedence over economic losses.
This situation marked a sharp escalation in the regional aviation environment, similar to the 2019 airspace closure following another episode of tension between the two countries. At that time, the airspace closure led to an estimated loss of Rs7.6 billion.
