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ISLAMABAD: 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 ministry said the shortfall, from April 24 to June 30, was in overflying revenue and was lower than the reported Rs8.5bn. The closure followed India’s unilateral suspension of the Indus Waters Treaty on April 23.
From the very next day, Pakistan withdrew overflight permission for all Indian-registered aircraft and those operated, owned, or leased by Indian carriers.
The measure affected 100 to 150 Indian aircraft daily, cutting transit traffic by almost 20 per cent. In 2019, a similar closure led to an estimated Rs7.6bn ($54m) revenue loss, compared to $100m previously reported.
Islamabad airport airspace to close daily for two hours until Aug 14
The ministry apprised the parliament that such decisions, under the jurisdiction of the federal government, were issued through Notices to Airmen (NOTAMs) and carried strategic and diplomatic weight to safeguard civilians, protect infrastructure, and allow military planning.
Sovereignty, defence
“While financial losses occur, sovereignty and national defence take precedence over economic considerations,” the statement read.
The PAA’s average daily overflight revenue in 2019, before tensions, was $508,000, compared to $760,000 in 2025.
The ministry made it clear that the amounts reflected “revenue shortfalls, not overall financial losses”, and noted that overflight and aeronautical charges remained unchanged, demonstrating resilience and avoiding tariff hikes or government bailouts.
Pakistan’s airspace is open to all except Indian airlines and aircraft till last week of August after the ban was extended twice on a monthly basis. Similarly, Pakistani carriers remain banned from Indian airspace. “When safeguarding sovereignty and security, no price is too high,” the ministry reiterated.
Islamabad flights
Separately, Islamabad International Airport’s airspace will be closed daily for two hours until August 14 for operational reasons, according to NOTAM A0510/25. Departures and arrivals will be halted from ground level to FL210, affecting flights to Lahore and northern areas.
The airspace will remain closed from 11am to 1pm.
On Friday, the temporary closure caused minor delays, with hundreds of passengers facing changes to their travel plans. The Federal Investigation Agency (FIA) said all immigration counters were fully staffed and operational, processing 2,847 passengers from 12 international flights in three hours.
A sudden schedule change led to many passengers departing at the same time. FIA Immigration completed screening and clearance in line with regulations and pledged to maintain efficient services while continuing efforts against human trafficking and wanted suspects.
Mohammad Asghar also contributed to this report
Published in Dawn, August 9th, 2025
Jamal Shahid is an Islamabad-based reporter for Dawn with over two decades of experience. He covers the Public Accounts Committee and the National Assembly’s Question Hour, as well as diplomatic events, climate change, and human rights issues in the capital.
