Closure of Indian Airlines Causes Rs 4bn Shortfall to PAA

ISLAMABAD- On Friday, the Ministry of Defence told the National Assembly that the closure of Indian airlines causes a shortfall of Rs. 4bn to the Pakistan Airports Authority (PAA).

Reason for closure:

On 23rd April, India closed the Indus Water Treaty and violated the International agreement. India has made the decision unanimously on account of false accusations of Pakistan’s involvement in the Pehalgam attack.

Pakistan has nullified all the Indian accusations and offered its help to uncover the truth. Thus, the Indian government did not pay heed to the request and attacked Pakistan. Moreover, it also violated the Indus Water agreement.

That is why, from the very next day of the Indian agreement violation, Pakistan has closed its airspace for Indian aircraft. The ban includes all those aircraft that are Indian registered or operated, owned, or leased by Indian carriers.

The 2-month closure estimates Rs. 8.5bn loss, but the original loss is less than the prediction.

Revenue loss is nothing over sovereignty:

The closure affects 100-150 Indian aircraft daily. In 2019, the same thing happened. At that time, the revenue loss reached Rs. 7.6bn ($50m) despite the previous report of $100m.

When the situation was not intense, the average 2019 revenue was $508,000 as compared to the 2025 revenue of $760,000.

The ministry, however, informed the Parliament that the closure decisions were issued through formal notices to Airmen in order to protect the infrastructure, lives of civilians, and for military planning to protect the land’s sovereignty.

In a statement, “While financial losses occur, sovereignty and national defence take precedence over economic considerations.” The ministry also stated that Pakistan banned only Indian aircraft, while the airspace is open for the rest. It also said that no price is higher than the country’s defence. He said, “When safeguarding sovereignty and security, no price is too high.”