In a significant blow to its aviation revenues, Pakistan has admitted to incurring losses totalling approximately ₹127 crore in just over two months following the decision to shut its airspace to Indian-registered aircraft. The revelation surfaced during recent proceedings in the National Assembly, where officials attributed the shortfall to a steep decline in overflight and aeronautical charges.
The exclusion took effect on April 24, just a day after New Delhi suspended the Indo–Pakistan Indus Waters Treaty in the wake of the April 22 terrorist attack in Pahalgam that claimed the lives of 26 civilians. This retaliatory measure by Pakistan barred Indian carriers from traversing its airspace, which led to the grounding or rerouting of between 100 and 150 flights per day—a move that slashed transit traffic by nearly 20 percent.
Pakistan’s Ministry of Defence clarified that the reported ₹127 crore loss represents a decline in revenue, rather than net financial losses, underscoring that overflight and aeronautical fees themselves remained unchanged. In local currency terms, this shortfall equates to around PKR 4.1 billion, a sobering figure that highlights the economic consequences of the policy.
Further clarity on the matter has come from corroborating reports by the media. Figures cited by media show that the Pakistan Airports Authority (PAA) suffered revenue losses exceeding ₹1,240 crore over the same period—from April 24 to June 30—primarily due to plummeting overflight fee collections. Meanwhile, media reported Pakistan’s defence ministry putting the loss figure at roughly ₹123 crore between June and August 2025.
While these estimates vary, what’s consistent across all reports is that Pakistan’s restrictions have significantly undermined its aviation revenues, primarily derived from transit and overflight traffic.
The figures serve as a sober reminder of the costs that geostrategic moves can impose on national economies. Airspace closures not only disrupt airline operations, but also ripple through national carriers, airports, and the myriad businesses dependent on aviation activity.
