Closure of airspace to Indian airlines: PAA reports Rs4.1bn revenue loss, NA told

ISLAMABAD: The National Assembly was informed on Friday that the Pakistan Airports Authority (PAA) has reported a sharp revenue loss of Rs4.1 billion following the closure of its airspace to Indian airlines, underscoring the economic cost of escalating tensions between the two nuclear-armed neighbours.

The closure came after India’s unilateral suspension of the Indus Waters Treaty (IWT) on 23 April 2025. In response, Pakistan withdrew overflight permissions for all Indian-registered aircraft – including those operated, owned, or leased by Indian airlines – starting 24 April.

Restrictions intensified during the military operation Marka-e-Haq from 6 to 12 May, when India’s airspace was also closed, although Pakistan’s skies remained largely restricted.

This stalemate affected between 100 and 150 Indian flights daily, reducing transit traffic by nearly 20 per cent and severely impacting Pakistan’s overflight revenues. Prior to the crisis, the country earned approximately $50,800 daily from such fees.

In a written reply submitted to the National Assembly, Defence Minister Khawaja Asif defended the decision, calling it a “costly but essential sacrifice.”

Pakistan extends airspace ban on Indian aircraft until August 24

He said the closure was necessary to safeguard civilian lives, protect critical infrastructure, and support military operations amid the deteriorating bilateral relationship.

“The defence of our homeland is paramount,” Asif said, stressing that national security considerations outweighed economic concerns.

The closure disrupted longstanding regional aviation patterns and signalled the severity of the diplomatic fallout since the last major confrontation in 2019.

By comparison, the House was informed that a similar airspace closure in 2019 – following a separate episode of tensions with India – led to estimated losses of Rs7.6 billion.

In a separate development, Interior Minister Mohsin Naqvi confirmed that the government continues to issue liquor licences to prominent hotels in federal capital, including Marriott, Serena, Best Western, and Move-n-Pick Hotel. The fees for these licences stand at Rs500,000 with an annual renewal cost of Rs150,000.

Meanwhile, Minister for Information and Broadcasting Ataullah Tarar announced expanded efforts to counter misinformation. State media outlets including Pakistan Broadcasting Corporation, PTV, and the Associated Press of Pakistan (APP) have bolstered initiatives through a newly established Digital Communication Department and a dedicated “Fact Checker” X formerly Twitter handle.

Copyright Business Recorder, 2025