ISLAMABAD—(SpecialCorrespondent/Web desk) – The Pakistan Airports Authority (PAA) has suffered a revenue shortfall of Rs4.1 billion in just over two months after closing its airspace to Indian-registered aircraft, the Ministry of Defence told the National Assembly on Friday.
Closure Follows India’s Indus Waters Treaty Suspension
The ministry explained that the loss, recorded between April 24 and June 30, came from reduced overflying revenue. The figure was significantly lower than the earlier estimate of Rs8.5bn. The closure decision followed India’s unilateral suspension of the Indus Waters Treaty on April 23.
Ban Impacts 100 to 150 Indian Aircraft Daily
From April 24, Pakistan withdrew overflight permission for all Indian-registered aircraft and those owned, operated, or leased by Indian carriers. This move affected around 100 to 150 Indian flights each day, cutting transit traffic by almost 20 percent. A similar ban in 2019 led to an estimated Rs7.6bn ($54m) loss.
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Strategic Decision Over Financial Gains
The ministry noted that such measures, issued through official NOTAMs, carry strategic and diplomatic importance to safeguard civilians, protect infrastructure, and allow military planning. “While financial losses occur, sovereignty and national defense take precedence over economic considerations,” the statement stressed.
Resilient Revenue Structure Despite Losses
The PAA’s daily overflight revenue in 2019 averaged $508,000, compared to $760,000 in 2025. The ministry clarified that these were revenue shortfalls, not full financial losses, and that overflight charges remained unchanged, avoiding tariff hikes or government bailouts.
Islamabad Airport Airspace Closure Until August 14
Separately, Islamabad International Airport’s airspace will close daily from 11am to 1pm until August 14 for operational reasons. On Friday, this temporary closure caused minor delays, affecting flights to Lahore and northern areas. Despite sudden schedule changes, FIA Immigration processed 2,847 passengers from 12 international flights in three hours, ensuring smooth services while continuing its crackdown on human trafficking.
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