Karachi, October 18, 2025 – The State Bank of Pakistan (SBP) has released a critical report titled “Managing Irrigation Water amid Climate Stress and Regional Uncertainty,” warning that Pakistan’s irrigation system is under unprecedented stress from water scarcity, inefficient canal operations, and growing climate and geopolitical challenges.
Indus Basin: The Lifeline Under Threat
Pakistan’s agriculture, which provides livelihoods to millions, relies on the Indus Basin Irrigation System (IBIS) — one of the world’s largest canal networks. Nearly 90% of the nation’s food production depends on Indus River water and its tributaries. However, the SBP warns that this lifeline is being strained by declining water resources, aging infrastructure, and mismanagement, raising alarms for the country’s long-term food and water security.
Aging Infrastructure and Inefficiency
Most of IBIS’s infrastructure was built during the colonial era and now suffers from silted canals, eroded banks, and high seepage losses. The system’s delivery efficiency is only 36%, meaning a large portion of water never reaches the crops. Furthermore, the outdated warabandi system supplies water unevenly, failing to match actual crop needs. The underpricing of canal water has also encouraged cultivation of water-intensive crops such as rice and sugarcane, worsening the strain on limited resources.
Water Availability Plummets
SBP data reveals a dramatic drop in renewable water resources, from 4,469 cubic meters per capita in 1967 to just 1,012 cubic meters in 2022—well below the global water stress threshold. Pakistan’s water stress level hit 110% in 2022, showing unsustainable usage patterns. The agriculture sector consumes over 90% of available water, while groundwater over-extraction adds to the depletion crisis.
Climate Change Intensifies the Challenge
The SBP report notes that Pakistan’s irrigation system, fed largely by glacier melt, is highly vulnerable to climate change. Rising temperatures and erratic rainfall have disrupted irrigation cycles, reduced soil moisture, and increased evapotranspiration. Despite facing these challenges, Pakistan’s water storage capacity is only 30 days, compared to 220 days in India and 900 days in the U.S., causing vast volumes of glacial and rainwater to flow into the sea unused.
Geopolitical Pressures and the Indus Waters Treaty
Adding to these domestic challenges, regional tensions with India have amplified water insecurity. India’s suspension of participation in the Indus Waters Treaty (IWT) in 2025 threatens Pakistan’s water share from the western rivers — Indus, Chenab, and Jhelum. SBP cautions that such actions could disrupt sowing schedules, irrigation cycles, and national food security, demanding urgent diplomatic engagement.
SBP’s Roadmap for Water Sustainability
To overcome these threats, the State Bank of Pakistan recommends an integrated water management strategy, including:
• Modernizing and rehabilitating the Indus Basin Irrigation System (IBIS)
• Introducing pricing reforms to ensure water efficiency and system maintenance
• Promoting drip and sprinkler irrigation technologies among farmers
• Scaling up rainwater harvesting and groundwater recharge initiatives
• Building small and medium dams to store monsoon water, alongside selective large multipurpose dams for drought and flood management
• Strengthening transboundary diplomacy on water rights and investing in water-efficient agriculture
Conclusion
Pakistan’s irrigation system stands at a critical tipping point. Without immediate reforms, the combined effects of climate change, population growth, and geopolitical instability could severely endanger the country’s food and water security. The SBP’s report serves as a wake-up call for policymakers to prioritize climate-smart agriculture, efficient water management, and long-term investments in irrigation resilience.