Pakistan has suffered significant financial setbacks after shutting its airspace to Indian-registered aircraft, with the Pakistan Airports Authority (PAA) losing over Rs 1,240 crore (PKR 4.1 billion) in a little more than two months. The figures, disclosed by the Ministry of Defence in a statement to the National Assembly on Friday, underline the steep economic cost of Islamabad’s move.
The airspace ban, imposed on April 24, came a day after Pakistan retaliated against India’s suspension of the Indus Waters Treaty on April 23. Under the order, overflight permissions were withdrawn for all Indian-registered aircraft, as well as those operated, owned, or leased by Indian carriers. While positioned as a strategic countermeasure, the decision has triggered severe revenue losses.
Compared to previous stand-offs, the current closure has been far more costly for Pakistan. The PAA’s average daily revenue from overflights, which was $508,000 in 2019, climbed to $760,000 in 2025 — making the financial impact of the ban significantly higher than in the past.
