ISLAMABAD, Pakistan – August 9, 2025 – The Pakistan Airports Authority (PAA) has reported a revenue shortfall of Rs4.1 billion over a two-month period, from April 24 to June 30, 2025, following the closure of Pakistan’s airspace to Indian-registered aircraft.
The airspace ban was implemented in response to India’s suspension of the Indus Waters Treaty. The PAA’s overflight revenue, which averaged an estimated $760,000 daily, has been significantly impacted, leading to a 20% drop in transit traffic as roughly 100-150 Indian aircraft per day were affected.
Despite the financial setback, the Ministry of Defence has reiterated that national sovereignty and security take precedence over economic concerns. The ban is currently in effect until the last week of August for all Indian airlines and aircraft, with a reciprocal ban in place for Pakistani carriers in Indian airspace.
The ministry clarified that this amount represents a revenue shortfall rather than an overall financial loss. The PAA has not increased its tariffs or sought any government bailouts.
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