Pakistan Suffers a Financial Loss of 1,201,565,000 Rupees Due to Ban on Air Travel with India
In a standoff that began on April 24, 2025, Pakistan closed its airspace to Indian carriers, a move that has significantly affected Pakistan's overflight revenue and air traffic. The closure, which was a response to escalating regional conflicts and specific incidents such as the Pahalgam terror attack on April 22, 2025, has been ongoing, with the latest notices indicating that the restrictions will continue through late August.
During the two-month period from April 24 to June 30, 2025, Pakistan reportedly lost approximately PKR 4.10 billion (around $15 million) in overflight revenue due to the airspace closure to Indian carriers. This closure impacted around 100-150 Indian aircraft daily, forcing them to take longer routes leading to increased flight times and operational costs.
India retaliated by banning Pakistani-operated or owned aircraft from entering its airspace starting April 30, 2025, and has extended this ban at least until August 23, 2025. This ban has disrupted flight paths for Indian carriers to Central Asia, North America, and Dubai, with extended flight times and cancellations of some routes such as IndiGo's service to Almaty, Kazakhstan.
Pakistan's overall airport revenue has increased compared to previous years, though officials emphasize that sovereignty and national defense take precedence over economic losses. The Ministry of Defence stated that decisions on airspace restrictions are made by the federal government and issued through NOTAMs (Notices to Airmen).
It is important to note that the loss of revenue is attributed to the ban on Indian aircraft using Pakistan's airspace. Prior to the ban, the Pakistan Airports Authority's (PAA) daily overflight earnings had grown from $508,000 in 2019 to $760,000 in 2025, indicating strong traffic before the ban. However, the current losses due to the ban on Indian aircraft are not specified in the article.
The ban on Indian aircraft has resulted in a reduction in overall transit traffic through Pakistan's skies by nearly 20 percent. The PAA's daily overflight earnings had increased from $508,000 in 2019 to $760,000 in 2025, a strong indication of the traffic before the ban.
This current situation is similar to 2019, when a similar ban after border tensions caused losses of around Rs 7.6 billion ($54 million). It is worth mentioning that the losses caused by the ban on Indian aircraft in 2019 were much lower than the $100 million figure reported at the time.
The restriction on Indian aircraft has been extended twice and will last until at least the last week of August. The loss of revenue is only the overflight fees paid by airlines to use Pakistan's airspace and does not include the total income of the Pakistan Airports Authority (PAA).
The Ministry of Defence emphasized that national security is more important than financial losses, stating: "When safeguarding sovereignty and security, no price is too high." The PAA has not yet released a statement regarding the impact of the ban on its overall earnings.
In conclusion, the ongoing airspace ban between Pakistan and India continues to impact both countries' air traffic and overflight revenue. The losses are significant, with Pakistan reportedly losing approximately PKR 4.10 billion (around $15 million) during the two-month period from April 24 to June 30, 2025. The ban has disrupted flight paths for Indian carriers, causing extended flight times and cancellations of some routes. Despite these losses, both countries have emphasized their commitment to national security and sovereignty.
The financial sector, particularly airlines, is experiencing substantial losses due to the ongoing airspace ban between Pakistan and India, with Pakistan reportedly losing around $15 million in overflight revenue between April 24 to June 30, 2025. This crisis in the airline industry has been triggered by political tensions between the two countries, escalating regional conflicts, and specific incidents such as the Pahalgam terror attack on April 22, 2025. The future extension of these restrictions is causing greater uncertainties in the general-news sector, as both countries prioritize national security and sovereignty over economic losses.
