Pakistan has incurred losses of about Rs 127 crore in just over two months after closing its airspace to Indian-registered aircraft, according to figures presented in the country’s National Assembly.

The closure, enforced from April 24 to June 30, came a day after India suspended the Indus Waters Treaty in retaliation for the April 22 terrorist attack in Pahalgam, Jammu and Kashmir, which killed 26 civilians. The attack was claimed by The Resistance Front (TRF), a Pakistan-based terror group backed by the ISI.

In a tit-for-tat move, Pakistan withdrew overflight permissions for all Indian-owned or leased aircraft, affecting around 100 to 150 flights daily and cutting its transit traffic by nearly 20 per cent. The Defence Ministry clarified that the losses — equivalent to PKR 4.10 billion — reflected “revenue shortfalls, not overall financial losses” and that overflight and aeronautical charges remained unchanged.

“While financial losses occur, sovereignty and national defence take precedence over economic considerations,” the ministry said in a statement quoted by Dawn. The ministry also noted that decisions on airspace restrictions rest with the federal government.

A similar closure in 2019, following India’s Balakot airstrike on a Jaish-e-Mohammed camp, had cost Pakistan an estimated Rs 235 crore. At that time, the airspace shutdown lasted months and was also prompted by heightened cross-border tensions.

Despite the latest losses, the Pakistan Airports Authority’s overall revenue has grown from $508,000 in 2019 to $760,000 in 2025. The country’s airspace remains closed to Indian aircraft and is expected to reopen in the last week of August.

India has also kept its airspace closed to Pakistan, with New Delhi stating, “When safeguarding sovereignty and security, no price is too high.” Both nations have issued Notams to reserve their respective airspaces for military exercises amid ongoing strained relations following the May 7–10 cross-border hostilities.