Pakistan has lost nearly Rs 127 crore in just over two months after shutting its airspace to India, according to a report by Dawn. The restriction was imposed on April 24, following the suspension of the Indus Waters Treaty by India after the Pahalgam terror attack.
Pakistan’s Ministry of Defence told the National Assembly that the losses, recorded between April 24 and June 30, were due to reduced overflying revenue. However, it clarified that these figures represent “revenue shortfalls, not overall financial losses,” and that overflight and aeronautical charges have remained unchanged.
In a statement, the Defence Ministry said, “While financial losses occur, sovereignty and national defence take precedence over economic considerations.”
The airspace closure was announced after Islamabad warned that any move by India to stop or divert water under the 1960 treaty would be considered an “act of war.” Since then, Indian airlines have been barred from using Pakistan’s airspace, resulting in an estimated 20% drop in transit traffic.
Dawn also reported that Pakistan experienced a similar situation in 2019, when it closed its airspace to India after the Indian Air Force conducted a strike on a Jaish-e-Mohammed camp in Balakot. That closure, which lasted several months, cost Pakistan around Rs 235 crore.
Currently, both countries continue to block each other’s airspace. India has extended its ban on Pakistani flights until August 23, while Pakistan is expected to keep its restrictions in place until the last week of this month.
Aviation experts say prolonged airspace closures impact not only revenue but also flight efficiency, leading to longer routes and higher costs for airlines. However, for Islamabad, the issue remains tied to national security rather than financial loss.
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Shivam Verma is a journalist with over three years of experience in digital newsrooms. He currently works at NewsX, having previously worked for Firstpost and DNA India. A postgraduate diploma holder in Integrated Journalism from the Asian College of Journalism, Chennai, Shivam focuses on international affairs, diplomacy, defence, and politics. Beyond the newsroom, he is passionate about football—both playing and watching—and enjoys travelling to explore new places and cuisines.
