Airspace closure deals another blow to crisis-hit Pakistan

Pakistan, already grappling with severe economic challenges, has incurred fresh financial losses following the closure of its airspace to Indian flights. The move, seen as a fallout of escalating tensions with India after the recent Pahalgam incident, is expected to further strain Islamabad's finances.

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India, in response to the rising tensions, has rerouted its flights to bypass Pakistani airspace. This has not only affected flight schedules but also significantly reduced Pakistan’s income from overflight charges. Previously, foreign airlines, including major operators like Boeing, were paying Pakistan around $580 per flight for using its airspace. On average, Pakistan was earning nearly $300,000 daily from these charges.

In a similar situation in 2019, Pakistan reportedly lost around $100 million during a prolonged airspace closure. The current scenario is projected to follow a comparable trajectory, with mounting losses each day the airspace remains shut.

Pakistan has expressed concern over India’s strong military posture, with speculation suggesting a possible operation within 24–36 hours. The ongoing conflict and economic retaliation through airspace restrictions are likely to intensify the strain on Pakistan’s already fragile economy.

As India adopts a series of strategic and economic measures in response to cross-border tensions, the impact is being felt deeply in Pakistan’s aviation revenue—a critical source of foreign exchange for the country. The closure marks yet another setback in Islamabad’s struggle to stabilize its economy amid regional tensions.