Pakistan eyes $18 billion investment to secure water supplies

Pakistan will need an estimated $18 billion in federal financing over the next decade to strengthen its water infrastructure, improve irrigation efficiency and increase water supplies to farms, according to a Planning Commission report.

The figures come from the National Water Security framework under URAAN Pakistan. It sets targets for 2029 and warns that water scarcity is getting worse.

Under the plan, water use efficiency should rise from 40 percent to 70 percent. Water availability at farm gates should increase from 58.3 million acre feet to 79 million acre feet over the same period.

The report puts the financing need at about $18 billion. That money would cover strategic water infrastructure, including reservoir development, flood management and canal modernisation.

Storage must nearly double in five years

National water storage capacity should rise from 15.318 million acre feet to 23.54 million acre feet by 2029, the framework says. At present, live storage accounts for only 11 percent of annual Indus River flows.

That low figure leaves the country exposed in both dry and wet periods.

Projects already in the Public Sector Development Programme should add 9.821 million acre feet of storage. A further pipeline of proposed projects could add another 14.5 million acre feet. The report names the Akhori Off Channel Storage Dam, the Shyok Dam and the Skardu Dam among the proposed schemes.

A Water System Integrator under the Indus River System Authority would track water distribution from rivers to farms.

Farming uses almost all the water

Agriculture accounts for about 95 percent of Pakistan’s freshwater withdrawals, yet irrigation efficiency stands at only around 40 percent. In simple terms, much of the water released for farming never reaches the crop roots.

The report calls for wider use of drip and sprinkler irrigation, backed by financial incentives. It also calls for changes to abiana charges so that they reflect the actual cost of operating and maintaining the system. Cropping patterns should shift as well, to improve water productivity.

About 20.58 million acres of suitable farmland sit outside formal irrigation networks, offering room to expand irrigated farming.

The framework recommends linking subsidies for solar-powered agricultural tubewells to groundwater registration and sustainable extraction limits. The point is direct. Cheap pumping should not come at the cost of the aquifer beneath the farm.

Groundwater is falling in Punjab

The Planning Commission warns that solarisation is speeding up groundwater depletion. Solar pumps let farmers draw water at almost no extra energy cost, so there is little reason to stop pumping.

Groundwater levels are falling by 0.5 to 1 metre each year across Punjab. The Indus Basin Aquifer has been identified as the world’s second most overstressed aquifer system.

For Punjab farmers, a falling water table raises pumping costs and can put small farms out of reach of water. Stronger groundwater regulation is therefore central to the plan.

Flood warnings have shrunk sharply

The report also highlights a sharp fall in flood warning time at Marala Headworks, from 40 hours in 2014 to just 5.5 hours in 2025. Shorter warnings leave less time to move people, livestock and machinery out of harm’s way.

The framework proposes the National Flood Protection Plan IV, stronger glacier monitoring through a National Glacier Protection Act, and updated flood design assessments.

Water security should be declared a national security priority, the framework proposes. That step would put water planning on the same footing as other long-term national risks.

A quarter of urban wastewater should be recycled

Pakistan aims to recycle at least 25 percent of urban wastewater under the framework. The report notes that about 53 percent of monitored urban water sources are unsafe for human consumption.

That figure underlines a second problem. Water quality matters as much as water quantity, especially in cities where treatment infrastructure has not kept pace with growth. Better treatment and reuse would ease pressure on fresh supplies and reduce health risks.

Meeting the 2029 targets will need coordinated action: infrastructure, reform and better governance together. A dam alone will not fix a system that loses canal water, pumps groundwater without limits and treats too little wastewater.

What is Pakistan’s water storage target for 2029?

The National Water Security framework targets national storage capacity of 23.54 million acre feet by 2029, up from 15.318 million acre feet now.

How much investment does the plan need?

Why does irrigation efficiency matter so much?

• ProPakistani, “Govt Eyes $18 Billion Investment to Boost Water Supplies, Irrigation Efficiency” (28 October 2026): https://propakistani.pk/2026/10/28/govt-eyes-18-billion-investment-to-boost-water-supplies-irrigation-efficiency/
• Feature Pakistan, “Sindh monsoon rainfall deficit 2026” (published): https://featurepakistan.com/sindh-monsoon-rainfall-deficit-2026/