Big blow to Pakistan! Cross-border tensions with India cost Rs 127 crore loss in two months due to….

In response to India’s suspension of the Indus Waters Treaty, Pakistan shut its airspace to Indian flights, which has now cost the country billions in losses. According to the Pakistan National Assembly, the government has suffered a loss of PKR 4.10 billion, equivalent to Rs 127 crore, in two months. 

What led Pakistan to lose Rs 127 crore in two months?

Pakistan’s Ministry of Defence reported the losses happened between April 24 and June 30, 2025, after airspace for Indian planes had been shut down. About 100-150 Indian aircraft were affected by this move. Despite the losses, it is noted that Pakistan Airports Authority’s revenue surged USD 760,000 in 2025, against USD 508,000 in 2019. “While financial losses occur, sovereignty and national defence take precedence over economic considerations,” said the statement, as quoted by the Dawn. The ministry clarified that airspace restrictions fall under the jurisdiction of the federal government. 

Also read: India-Pakistan Asia Cup 2025 match to be cancelled amid escalating tensions? ECB makes BIG statement

Earlier, Pakistan suffered USD 54 million in losses after the closure of airspace because of cross-border tensions. Back in 2019, Pakistan closed its airspace for over four months in response to the Balakot airstrikes, resulting in significant losses for Indian airlines. The current closure is set to continue until at least August 24, 2025. 

India-Pakistan airspace stand-off

Both Indian and Pakistani airspaces remain closed to each other’s aircraft, prioritising national security and safeguarding sovereignty. The closures are expected to continue until at least August 24, 2025. Initially, the closure was set to expire on May 24th, but both nations have been constantly extending the restrictions. 

Also read: BIG statement by US on India-Pakistan ceasefire, says, ‘We got involved directly’; Marco Rubio calls Trump ‘president of peace’

Meanwhile, the airspace closure has been incurring significant financial losses for Pakistani International Airlines as well as Indian Airlines, due to rerouting and increased fuel consumption. This disruption has led to longer flight times and higher costs. Amid this, foreign airlines can take cost advantage of Pakistan’s airspace over Indian carriers on shared routes, which could impact their competitiveness 

Pakistan’s Resistance Front (TRF) claimed responsibility for the Pahalgam attack in J-K in April this year. In response to the attack, India downgraded diplomatic relations with Pakistan, suspended the Indus Waters Treaty, and imposed a trade ban, before launching Operation Sindoor.