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PAA suffers Rs4bn loss after airspace ban for Indian airlines

Pakistan Loses Rs4.1 Billion in Overflight Revenue After Airspace Ban on Indian Aircraft

Pakistan has suffered an estimated Rs4.1 billion loss in overflight revenue following a ban on Indian-registered aircraft using its airspace, The News reported on Saturday.

In a written reply during the National Assembly’s question hour, Defence Minister Khawaja Asif confirmed that the revenue shortfall was recorded by the Pakistan Airports Authority (PAA) between April 24 and June 30, 2025.

“When it comes to safeguarding our sovereignty and national security, no price is too high. The defence of our homeland will always remain paramount,” Asif stated.

Ban Imposed After Indus Waters Treaty Suspension
The minister said Pakistan withdrew overflying permission for all Indian-registered aircraft, as well as those owned, operated, or leased by Indian airlines, starting April 24, 2025, after India unilaterally suspended the Indus Waters Treaty on April 23.

From May 6 to May 12, during Operation Marka-e-Haq, Pakistan also restricted its airspace, affecting 100–150 Indian flights daily and reducing overall transit traffic by nearly 20%.

Previous Losses in 2019
Asif revealed that a similar closure in 2019 had resulted in a $54 million (Rs7.6 billion) loss, contrary to earlier claims of $100 million. At the time, Pakistan’s average daily overflight revenue stood at $508,000 before tensions escalated.

Reciprocal Airspace Bans
Pakistan’s airspace is now open to all international airlines except those of Indian origin. Similarly, Pakistani aircraft remain banned from flying over Indian airspace.

Despite the financial hit, the minister said the PAA had shown fiscal resilience, with no increase in overflight or aeronautical charges during the affected period.

National Security Over Economic Losses
Khawaja Asif reiterated that while the closure did cause economic setbacks, such decisions were necessary for national sovereignty and defence.

“The protection of our homeland will always remain our top priority,” he added.

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