Pakistan incurs Rs4.1bn shortfall after barring Indian aircraft from airspace: ministry

Pakistan incurs Rs4.1bn shortfall after barring Indian aircraft from airspace: ministry

By Staff Reporter

ISLAMABAD: Pakistan has incurred a revenue shortfall of Rs4.1 billion in little more than two months after shutting its airspace to Indian-registered aircraft, the defence ministry informed parliament Friday, insisting national security trumps economic costs.

The shortfall, from April 24 to June 30, arose from lost overflying fees and was below an earlier reported Rs8.5 billion , the ministry said in a written reply to the National Assembly.

The ban followed India’s unilateral suspension of the Indus Waters Treaty on April 23, with Pakistan revoking overflight rights the next day for all Indian-registered planes and those operated, owned or leased by Indian carriers.

It has affected 100 to 150 Indian aircraft daily, slashing transit traffic by almost 20 percent. A comparable closure in 2019 caused an estimated Rs7.6 billion loss, against a prior $100 million figure, the ministry added.

These measures, under federal authority, are enacted via Notices to Airmen (NOTAMs) and hold strategic, diplomatic value in shielding civilians, infrastructure and enabling military operations, it said.

“While financial losses occur, sovereignty and national defence take precedence over economic considerations,” the statement read. The Pakistan Airports Authority (PAA) averaged $508,000 daily in overflight revenue in 2019 pre-tensions, versus $760,000 in 2025.

The ministry stressed the sums denote “revenue shortfalls, not overall financial losses”, with unchanged overflight and aeronautical fees underscoring resilience absent tariff hikes or bailouts. Pakistan’s airspace stays open to all but Indian airlines and aircraft until late August, after two monthly extensions, while Pakistani carriers face a reciprocal Indian ban. “When safeguarding sovereignty and security, no price is too high,” the ministry reaffirmed.

Separately, Islamabad International Airport airspace faces daily two-hour closures until August 14 for operational needs. The curbs, from ground to flight level 210 (21,000 feet), run 11:00 am to 1:00 pm local time, hitting departures, arrivals and especially Lahore and northern routes.

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