Pakistan suffers over Rs 1,240 crore loss after airspace ban on Indian flights following Indus Waters Treaty suspension
Pakistan’s Ministry of Defence has told the National Assembly that the country has suffered a financial blow exceeding Rs 1,240 crore or PKR 4.1 billion after shutting its airspace to Indian-registered aircraft. According to a report in Dawn, the ban came into effect on 24th April after India suspended the Indus Waters Treaty on 23rd April in response to the Pahalgam terrorist attack that claimed the lives of 26 innocent Hindus. Following the suspension of the treaty by India, Islamabad withdrew overflight permission for all Indian-registered aircraft and those operated, owned or leased by Indian carriers.
Revenue plunge and reduced air traffic
As per reports, 100–150 Indian aircraft used to pass through Pakistani airspace. The Pakistan Airports Authority saw its overflying charges collapse between 24th April and 30th June. Pakistan’s transit air traffic reduced by almost 20% following the ban. While the defence ministry of Pakistan claimed “sovereignty and national defence take precedence over economic considerations”, losing PKR 4 billion in revenue is a major loss for a country already in a major financial crisis.
Losses worse than previous standoff
In 2019, PAA’s average overflight revenue was $508,000. At that time, there were airspace restrictions were imposed by both sides following military standoff in response to the deadly Pulwama attack. The airspace remained closed for around five months and was reopened in July 2019. However, the revenue in 2025 was $760,000 before the ban. That means the current ban is proving more costly than the previous India–Pakistan airspace restrictions. The ban has been extended twice and will remain in force until the last week of August.
Continuing restrictions on both sides
Notably, not only Pakistan, but India has also banned all Pakistani-operated, owned or leased aircraft, including military flights, since 30th April. Minister of State for Civil Aviation Murlidhar Mohol confirmed India’s ban will remain until at least 23rd August 2025, citing “prevailing security protocols and strategic considerations.”
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