Pakistan has incurred losses of approximately $14.39 million (`4.1 billion) in just over two months following its decision to block Indian aircraft from using its airspace, according to figures presented in the National Assembly on Friday.
The figures, reported by Dawn, cover the period from April 24 to June 30, 2025, and stem from a retaliatory ban imposed one day after India unilaterally suspended the Indus Waters Treaty.
In response, Islamabad barred all Indian-owned, operated, or leased aircraft from overflying its territory — a move that impacted 100 to 150 Indian flights daily and reduced overall overflight traffic by nearly 20 per cent.
Revenue Dip from Overflight Fees: While the `4.1 billion loss is significant, officials clarified that it reflects only the lost overflight fees — the charges airlines pay to fly through Pakistan’s airspace — not the total income of the Pakistan Airports Authority (PAA).
An earlier estimate had pegged the figure at `8.5 billion, but that was revised following a more detailed audit. Despite not increasing its charges, the PAA had seen rising overflight revenue over recent years — from $508,000 per day in 2019 to $760,000 per day in 2025.
Addressing the economic hit, the Ministry of Defence told parliament that national security overrides commercial considerations.
“When safeguarding sovereignty and security, no price is too high,” the ministry said, emphasising that airspace closures are implemented by the federal Government and communicated through NOTAMs (Notices to Airmen).
This isn’t the first time tensions have impacted regional aviation. A similar airspace restriction following the 2019 border clashes led to losses of Rs 7.6 billion ($54 million) - though initial estimates then had ballooned to $100 million, later deemed inflated.
As of now, Pakistan’s airspace remains closed to all Indian carriers though open to other international airlines. The restriction has been extended twice and is expected to stay in effect until at least the final week of August.
India, for its part, continues to enforce a reciprocal ban on Pakistani airlines, maintaining the tit-for-tat standoff that has now entered its fourth month.