In a stunning admission, Pakistan’s Ministry of Defence confirmed the ban, imposed in retaliation for India’s actions, has led to a dramatic plunge in revenue and cut transit air traffic by 20%.
Islamabad, Pakistan – August 10, 2025: A political gamble by Pakistan has backfired spectacularly, as a stunning admission from its own government reveals a massive financial cost. According to a statement made by the Ministry of Defence in the National Assembly, Pakistan has lost over Rs 1,240 crore (PKR 4.1 billion) in just over two months after shutting its airspace to Indian-registered aircraft.
The airspace ban, which was initiated on April 24, was claimed by Islamabad to be a retaliatory measure against India’s suspension of the Indus Waters Treaty. The move withdrew overflight permission for all Indian aircraft and those operated or leased by Indian carriers. However, as the latest figures show, the decision was a self-inflicted wound.
The Pakistan Airports Authority’s (PAA) revenue from overflying charges has plunged dramatically, with the ban affecting an estimated 100-150 Indian aircraft every day. The closure has also slashed Pakistan’s overall transit air traffic by nearly 20%. The financial pain is even more pronounced than during a similar standoff in 2019, as the PAA’s average daily overflight revenue has soared from $508,000 to $760,000 in 2025.
While admitting the financial setback, Pakistan’s defence ministry tried to justify the move by stating that “Sovereignty and national defence take precedence over economic considerations.” They also claimed the measures were issued via Notices to Airmen (NOTAMs) for “strategic and diplomatic” reasons.
The ongoing standoff originally began after a Pakistan-sponsored terror attack in Pahalgam, Jammu & Kashmir, on April 22, which tragically killed 26 people. In response, India banned all Pakistani-operated or leased aircraft from entering its skies, a restriction that remains in effect. India’s Minister of State for Civil Aviation, Murlidhar Mohol, confirmed that India’s NOTAM has been extended until August 23, citing “prevailing security protocols and strategic considerations.”
Currently, Pakistan’s airspace remains open to all international flights except those from Indian carriers. The ban, which has been extended twice, is now set to last until the last week of August, continuing to drain millions from the national coffers.