Pakistan's Groundwater Crisis: Policy Lessons and a Framework for Sustainable Resource Use

Nazam Maqbool
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Nazam Maqbool: Pakistan Institute of Development Economics

No 2026:7, PIDE-Working Papers from Pakistan Institute of Development Economics

Abstract: Pakistan's groundwater crisis stems primarily from governance failures and policy distortions rather than an actual shortage of physical water resources. The unregulated expansion of tube wells over the decades, coupled with poorly designed energy and crop subsidies, has led to excessive groundwater extraction. Additionally, a consistent policy bias towards surface-water planning, along with fragmented institutional responsibilities, has hindered effective groundwater management. As a result, groundwater extraction has now surpassed natural recharge rates in many parts of the country, especially in the Indus Basin and major urban centers. Pakistan has become the world's fourth-largest user of groundwater and is home to the second most stressed aquifer globally. This quantitative strain is exacerbated by severe degradation of water quality, which includes widespread salinity, pollution, and arsenic contamination. This has critical risks to food security, public health, and climate resilience. Drawing on secondary data and institutional analysis, this paper presents a comprehensive framework for groundwater sustainability. The framework involves immediate regulation of abstraction, medium-term reforms in efficiency and pricing, and long-term transformations in institutional and legal arrangements. The findings emphasise that without decisive governance reforms, ongoing groundwater depletion will increasingly threaten Pakistan's economic stability and its capacity to adapt to climate change.

Keywords: Groundwater Governance; Aquifer Depletion; Indus Basin; Climate Vulnerability; Agricultural Water Use; Groundwater Recharge. (search for similar items in EconPapers)
Pages: 42
Date: 2026
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