PAA loses Rs4bn after airspace closure to India

The Pakis­tan Airports Authority (PAA) has lost Rs4.1 billion in just over two months after closing its airspace to Indian-registered aircraft, the Ministry of Defence informed the National Assembly on Friday.

The decision followed India’s unilateral suspension of the Indus Waters Treaty, after which Pakistan withdrew overflying permission for all Indian-registered aircraft and those operated, owned, or leased by Indian airlines. The restriction, imposed during Operation Marka-e-Haq, also saw Indian airspace closed to Pakistani airlines. The move affected 100 to 150 Indian aircraft daily, reducing Pakistan’s transit traffic by almost 20 percent. Despite the losses, the defence minister stressed that the country’s sovereignty and security outweigh economic concerns.

According to the PAA, the shortfall of Rs4.1 billion was recorded in the first week of the closure. In comparison, the 2019 airspace closure cost the authority Rs7.6 billion ($54 million) in overflying revenue, which was significantly less than earlier estimates of $100 million. Average daily revenue from overflights before the 2019 escalation was about $508,000. The minister highlighted that Pakistan’s airspace is now open to all airlines except those of Indian origin, while Pakistani aircraft remain banned from Indian airspace. Despite the disruption, the PAA showed financial resilience, making no changes to overflight or aeronautical charges during the affected period. He reiterated that closing the airspace was a necessary sacrifice for the defence of the homeland, stating that protecting national sovereignty remains the top priority.