PAA suffers Rs4bn loss after airspace ban for Indian airlines

• 100–150 Indian aircraft blocked daily from Pakistan's airspace
• Khawaja Asif says sovereignty outweighs financial considerations.
• Protection of homeland remains foremost priority: minister.
  

Pakistan has incurred an estimated loss of Rs4.1 billion in overflight revenue following a ban on Indian-registered aircraft using its airspace, The News reported on Saturday.

In a written response during the National Assembly's question hour, Defence Minister Khawaja Asif noted that the said shortfall was recorded by the Pakistan Airports Authority (PAA) between April 24 to June 30, 2025.

However, he stressed, "When it comes to safeguarding our sovereignty and national security, no price is too high. The defence of our homeland will always remain paramount".

Speaking in the lower house of the parliament, Asif said that following India’s unilateral suspension of the Indus Waters Treaty on 23rd April 2025, Pakistan, in line with national security policy, withdrew overflying permission for all Indian registered aircraft and those operated, owned, or leased by Indian airlines, operators from April 24 and from May 6 to May 12, 2025 amid operation Marka-e-Haq.

Indian airspace was also closed while Pakistan's airspace remained largely restricted, affecting 100-150 Indian aircraft daily, reducing transit traffic by nearly 20% and contributing to a revenue decline.

He stated that the PAA experienced an estimated shortfall of Rs4.1 billion in overflying revenue due to airspace closure for Indian airlines registered aircraft for the period from  April 24 to April 30.

Moreover, he stated that the PAA experienced an estimated shortfall of Rs7.6 billion (estimated $54 million) in overflying revenue due to airspace closure in 2019, as opposed to $100 million. 

The defence minister said that while it is true that Pakistan incurred certain financial losses due to the closure of its airspace during the recent conflict with India, the sovereignty and defence of the nation take precedence over economic considerations. "The protection of our homeland remains our foremost priority," he added.

He said that Pakistan airspace is currently available for all airlines, aircraft except for those of Indian origin.

Asif went on to say that Pakistani airlines and aircraft are also banned from flying in Indian airspace. ii. Average per day revenue from overflying was $508,000 in 2019 (before escalation).

Despite the temporary disruption, he further said that the PAA has demonstrated fiscal resilience. Notably, no revision in over flight or aeronautical charges was made during the affected period.

The written reply stated that though Pakistan did face some economic setbacks following the closure of its airspace during the recent tensions with India, such measures were a necessary sacrifice.

"When it comes to safeguarding our sovereignty and national security, no price is too high. The defence of our homeland will always remain paramount," he added.