ISLAMABAD — Pakistan’s decision to block Indian aircraft from its skies has shaved more than Rs4.1 billion off the Pakistan Airports Authority’s (PAA) overflight revenue in just over two months, the Ministry of Defence told parliament on Friday.
The restriction, in place since April 24, came a day after New Delhi unilaterally suspended the Indus Waters Treaty—a move Islamabad viewed as a major breach of a decades-old agreement. In response, Pakistan barred all Indian-registered aircraft, along with any planes operated, owned, or leased by Indian carriers, from crossing its airspace.
Impact: 100–150 Flights Lost Per Day
According to the ministry, the ban has cut daily transit traffic by nearly 20%, hitting 100 to 150 flights each day. The revenue loss, calculated for April 24–June 30, was still lower than some early media estimates of Rs8.5bn.
This is not the first time airspace restrictions have cost Pakistan heavily. A similar closure in 2019—following tensions over Kashmir—resulted in a loss of around Rs7.6bn ($54m), though at the time, figures as high as $100m were widely quoted.
Defence First, Revenue Second
The ministry stressed that while the financial hit is undeniable, “sovereignty and national defence take precedence over economic considerations.”
Such airspace decisions, it added, are strategic tools managed at the federal level and communicated via NOTAMs (Notices to Airmen). They can serve military, security, and diplomatic purposes, from protecting civilians to allowing defence operations.
PAA figures show that average daily overflight income in 2019 stood at $508,000; in 2025, before the latest closure, it was averaging $760,000. The government has not increased overflight charges and has avoided seeking bailouts, signalling an effort to absorb the blow without passing costs to airlines.
Currently, Pakistani skies remain closed to Indian carriers until at least late August, with the ban already extended twice. Indian authorities have imposed reciprocal restrictions on Pakistani airlines.
Islamabad Airport Adds Temporary Daily Closure
In a separate move, Islamabad International Airport will see its airspace closed daily from 11am to 1pm until August 14 for operational adjustments. The shutdown—from ground level up to flight level 210—will mainly affect flights bound for Lahore and northern destinations.
The first day of the closure brought only minor delays, though hundreds of travellers had to adjust their plans. The Federal Investigation Agency said all 12 international flights during the affected window were processed efficiently, with nearly 2,850 passengers cleared in three hours despite the congestion.
FIA officials also reaffirmed their ongoing work against human trafficking and wanted individuals, saying passenger screening would remain “swift and thorough” during the temporary restrictions.