Islamabad – Pakistan’s airspace is witnessing a dramatic drop in international air traffic as Indian and global airlines reroute flights to avoid flying over its territory. This shift, triggered by heightened tensions with India, is costing Islamabad crucial overflight revenue — a significant blow to its already fragile economy.
Venture capitalist Rajeev Mantri called attention to the economic fallout, warning that Pakistan’s decision to block Indian carriers would backfire. “Loss of overflight fees will be a very meaningful forex loss for a forex-starved country like Pakistan, which has no export-competitive industries and is always on the edge,” Mantri posted on X.
His remarks followed a viral radar image showing almost no aircraft flying over Pakistan. Major international carriers like Emirates, British Airways, Lufthansa, and Air France are reportedly bypassing Pakistani airspace, joining Indian airlines such as Air India and IndiGo in taking longer routes.
Entrepreneur Arun Pudur echoed this on May 5, claiming that only a handful of flights now cross Pakistan. “Global airlines are avoiding Pakistan like the plague… This is a massive blow to Islamabad’s forex earnings from overflight fees worth hundreds of millions.”
These fees, particularly from Indian carriers in one of the world’s fastest-growing aviation markets, had long been a reliable income stream for Pakistan. Their loss adds to the country’s economic distress and comes at a time when Moody’s has already flagged the risks of escalating conflict.
“Sustained tension with India could hurt Pakistan’s economic recovery,” Moody’s stated. The agency warned that prolonged standoffs would damage Pakistan’s fiscal health, strain foreign reserves, and make it harder to access international funds or meet debt obligations.
The situation mirrors a similar episode in 2019, when Pakistan shut its airspace after India’s Balakot airstrikes. Back then, an estimated $100 million was lost due to daily diversions of nearly 400 flights, affecting overflight charges, terminal fees, and PIA’s global operations.
Despite efforts to frame the rerouting as a tactical win, many observers in India and globally see it as an act of economic self-sabotage. “Pakistan loses millions by shutting its airspace to the world’s third-largest aviation market. The strategic cost far outweighs the symbolic gain,” said one Indian user on social media.
With its airspace now emptier than ever, Islamabad’s decision may prove to be costlier than expected — economically and diplomatically.
