Islamabad’s decision to close its airspace to Indian aircraft in April 2025 has come at a steep price. According to figures tabled in Pakistan’s National Assembly on Friday, the country has incurred losses amounting to PKR 4.10 billion in just over two months — from April 24 to June 30, 2025.
The ban, which applies to aircraft owned or leased by Indian carriers, was imposed on April 23, a day after India suspended the Indus Waters Treaty in response to the deadly Pahalgam terror attack. That assault, claimed by the Pakistan-based militant group The Resistance Front (TRF), took place on April 22 and killed 26 civilians.
Pakistan’s Ministry of Defence confirmed that around 100–150 Indian aircraft have been affected since the restrictions began. While the financial hit has been significant, the ministry stressed that “sovereignty and national defence take precedence over economic considerations.”
Interestingly, despite the losses, the Pakistan Airports Authority’s overall revenue has grown over the years — from $508,000 in 2019 to $760,000 in 2025. However, this year’s figures recall the heavy blow Pakistan suffered in 2019, when airspace closures due to cross-border tensions led to $54 million in losses.
The airspace standoff is not one-sided. India has also shut its skies to Pakistani flights, with New Delhi stating, “When safeguarding sovereignty and security, no price is too high.”
For now, Pakistan’s airspace ban on Indian flights will remain in place until at least the last week of August. The move was part of a broader diplomatic and economic retaliation between the two neighbours, which has included downgraded diplomatic ties, suspension of trade, and the launch of India’s Operation Sindoor.
With both sides showing no sign of backing down, the economic fallout continues to mount — a stark reminder that in geopolitical standoffs, the costs are not just counted in policy wins or losses, but in billions of rupees and dollars drained from national economies.
