Pakistan has incurred a revenue shortfall of Rs4.1 billion following its decision to close airspace to Indian-operated and Indian-owned aircraft, according to figures presented by the Ministry of Defence in the National Assembly last week.
The ministry said the loss stemmed from reduced “overflying revenue” — fees collected from airlines for using Pakistan’s airspace — since the restrictions were imposed in late April. Despite the financial impact, officials stressed that the country’s defence and sovereignty remain the government’s priority.
The airspace closure came in the wake of heightened tensions between the two neighbours. On April 22, a deadly attack on Indian tourists in Kashmir left more than 70 people dead. The incident triggered days of missile strikes, drone attacks, and artillery fire across the Line of Control, until a ceasefire was reached on May 10.
In response to the escalation, Pakistan closed its airspace to Indian aircraft on April 24. India implemented a reciprocal ban shortly afterwards, with both countries initially setting the restrictions to remain until late May. However, the measures were repeatedly extended.
Pakistan extended its airspace closure until June 24, prompting India to prolong its own ban until June 23. On June 23, both governments announced further extensions of around one month. Later, India said Pakistan had lengthened the restrictions until August 23, with New Delhi matching the date for its own airspace ban on Pakistani flights.
The extended closures have disrupted flight operations and rerouted international carriers, significantly affecting the volume of overflights through Pakistani airspace. This, in turn, has cut into the Pakistan Airports Authority’s earnings from aeronautical charges.
According to Dawn, the Defence Ministry clarified that there has been no change in the rates charged for overflight and other aeronautical services. The Rs4.1 billion figure, officials noted, reflects the revenue shortfall specifically linked to the absence of Indian-operated flights, rather than an overall operational loss.
While the financial impact is considerable, the ministry reiterated that national security considerations outweigh economic concerns in this matter. “Defence and sovereignty take precedence,” the statement to the National Assembly said.
The airspace dispute marks another strain in already fragile relations between Islamabad and New Delhi, with no clear sign of when restrictions might be lifted. Analysts warn that prolonged closures could further burden Pakistan’s aviation revenues and inconvenience international carriers, while also adding fuel to broader regional tensions.
