Economic Fallout: Pakistan’s Airspace Closure Costs Millions

Pakistan’s decision to close its airspace to Indian flights following the Pahalgam terror attack has backfired economically, leading to significant revenue losses. The move, aimed at retaliating against India, has deprived Pakistan of critical overflight fees from one of the world’s largest and fastest-growing aviation markets. Indian airlines, including Air India and IndiGo, are rerouting flights to North America, Europe, and the Middle East, incurring higher fuel costs and extended travel times. However, the immediate financial impact is felt by Pakistan, with estimates suggesting losses amounting to hundreds of millions of dollars annually. This decision mirrors a similar airspace closure in 2019, which cost Pakistan nearly $100 million. The economic repercussions highlight the unintended consequences of geopolitical actions, raising questions about the long-term viability of such measures. Explore of this decision on regional aviation and economic stability.