Pakistan shuts airspace for Indian airlines, halts all trade with India as ties nosedive after Pahalgam

Pakistan on Thursday announced a sweeping set of retaliatory actions against India, including the immediate closure of its airspace to all Indian-owned or operated airlines, amid escalating tensions triggered by the deadly terrorist attack in Jammu and Kashmir's Pahalgam that claimed at least 26 lives.

Following a meeting of Pakistan's National Security Committee (NSC), the Prime Minister’s Office said in a statement, "Pakistan shall exercise the right to hold all bilateral agreements with India including but not limited to Simla Agreement in abeyance."

Among the measures announced, Pakistan has decided to close the Wagah border post with immediate effect. "All cross-border transit from India through this route shall be suspended, without exception. Those who have crossed with valid endorsements may return through that route immediately but not later than 30 April 2025," the statement read.

Further, Pakistan has suspended all visas under the SAARC Visa Exemption Scheme (SVES) issued to Indian nationals, with immediate effect. "Indian nationals currently in Pakistan under SVES are instructed to exit within 48 hours, less Sikh pilgrims," it said.

In a diplomatic escalation, Pakistan also declared Indian Defence, Naval, and Air Advisors in Islamabad as persona non grata. "They are directed to leave Pakistan immediately but not later than 30 April 2025. These posts in the Indian High Commission are deemed annulled. Support staff of these Advisors are also directed to return to India," the statement noted.

Additionally, the strength of the Indian High Commission in Islamabad will be reduced to 30 diplomats and staff members from April 30.

The statement confirmed that “Pakistan’s airspace will be closed with immediate effect for all Indian owned or Indian operated airlines.” All trade with India, including indirect trade via third countries, has been suspended “forthwith”.

These decisions came a day after India's Cabinet Committee on Security, chaired by Prime Minister Narendra Modi, announced its own set of punitive actions against Pakistan in response to Tuesday’s terror strike in Pahalgam. The attack, which targeted a busy tourist area, left 26 dead, including two foreigners— one from the UAE and another from Nepal.

India’s Foreign Secretary Vikram Misry, detailing the retaliatory actions, said, “Recognising the seriousness of this terrorist attack, the Cabinet Committee on Security (CCS) decided upon the following measures—The Indus Waters Treaty of 1960 will be held in abeyance with immediate effect until Pakistan credibly and irrevocably abjures its support for cross-border terrorism.”

Other Indian measures included shutting down the Attari integrated checkpost, cancelling Pakistani access under the SAARC visa scheme, expelling Pakistani military advisors in New Delhi, and recalling its own advisors from Islamabad.

India's suspension of the Indus Waters Treaty is seen as a particularly significant move, signalling New Delhi"s intent to exert pressure by potentially altering water flows from the Indus, Jhelum, and Chenab rivers. Experts warn that the stoppage of regulated water releases from key projects like Kishanganga and Ratle could affect Pakistan’s agriculture and power supply.