Pakistan lost ₹1,240cr due to airspace ban on India
What's the story
Pakistan's decision to close its airspace for Indian-registered aircraft between April 24 and June 30 has cost the Pakistan Airports Authority (PAA) a significant amount. While Dawn mentions a loss of ₹123 crore, The Economic Times reports it as ₹1,240 crore. The closure was a retaliatory move after India suspended the Indus Waters Treaty on April 23, following a terrorist attack in Jammu and Kashmir's Pahalgam. The attack killed 26 people and was blamed on ISI-backed militants from Pakistan.
Economic impact
Impact on transit traffic and daily flights
The airspace closure has resulted in a nearly 20% reduction in Pakistan's transit traffic, affecting 100-150 Indian flights daily. The ban was imposed on all Indian-registered aircraft and those operated, owned or leased by Indian carriers. This is not the first time Pakistan has closed its airspace to India; a similar move in 2019 cost around ₹228 crore.
Official statement
Overflight earnings and defense ministry stance
The PAA's average daily overflight earnings were $508,000 in 2019 and have increased to $760,000 this year. Despite the economic loss, Pakistan's defense ministry said "sovereignty and national defense take precedence over economic considerations." The airspace restrictions were issued via Notices to Airmen (NOTAMs) for "strategic and diplomatic" reasons.
Military escalation
Heightened military tensions and Operation Sindoor
The airspace closure, which began on April 24, comes amid heightened military tensions that escalated further after India launched Operation Sindoor from May 7-10. The operation targeted terror hubs in Pakistan and Pakistan-occupied Jammu and Kashmir with precision strikes. In response, Pakistan launched drones and missiles at Indian targets, prompting the Indian Air Force to strike at least nine terror hubs in Pakistan and Pakistan-Occupied Kashmir using advanced weaponry.
Ongoing restrictions
India's response and airspace status
India has also banned Pakistani-operated aircraft from its airspace since April 30. The NOTAM against these flights has been extended till August 23, 2025, due to "prevailing security protocols and strategic considerations." Despite the ongoing tensions, Pakistan's skies remain open to all other international airlines except those operated by Indian carriers.