Airspace Closure Following Indus Water Treaty Suspension Causes PKR 4.1 Billion Loss for Pakistan
Pakistan’s Airspace Closure Hits Economy Hard
- Pakistan shut its airspace to Indian planes from April 24 to June 30, 2025, after India suspended the Indus Water Treaty on April 23.
- This move affected 100-150 Indian aircraft, causing losses of approximately PKR 4.10 billion (Rs 127 crore) over two months, according to Pakistan’s Ministry of Defence.
Despite Losses, Airport Revenue Sees Growth
- Pakistan Airports Authority revenue increased from $508,000 in 2019 to $760,000 in 2025.
- The Defence Ministry emphasized sovereignty and national defense take priority over economic losses.
Historical Context and Current Status
- Pakistan faced $54 million in losses due to airspace closure amid cross-border tensions in 2019.
- The airspace remains closed for Indian aircraft and is expected to stay shut until late August 2025.
- India has also kept its airspace closed to Pakistani flights, stating, “When safeguarding sovereignty and security, no price is too high.”
Background: Tensions and Terror Attacks
- The closure follows the Pahalgam terror attack on April 22, claimed by Pakistan-based terror group The Resistance Front (TRF).
- In response, India downgraded diplomatic ties, suspended the Indus Waters Treaty, and imposed a trade ban.
- Pakistan’s airspace closure is seen as a retaliatory move, resulting in significant economic losses.
Despite the significant financial losses, Pakistan maintains that protecting national sovereignty and security remains its top priority amid ongoing tensions with India. The airspace closure and related measures are expected to continue until diplomatic relations improve.
