Water, an indispensable asset, holds immeasurable value for sustaining life and powering every industry. It is essential in producing commodities such as food, clothing, gadgets, automobiles, and books. However, Pakistan faces a formidable challenge in the form of a rapidly increasing population, making resource management and equal distribution, particularly of water, even more daunting. The global concern for water conservation and management has never been more critical. Pakistan’s economy heavily relies on the agricultural sector. Approximately 95% of water in Pakistan is dedicated to this sector, involving 60% of the population in agriculture and livestock activities. Astonishingly, 80% of the country’s exports are based on these sectors. Stimson Center’s study reveals that almost three-quarters of the water supply is devoted to cultivating water-intensive crops like wheat, rice, sugar cane, and cotton. The grim reality is that the Pakistan Council of Research in Water Resources (PCRWR) predicted a severe water crisis by 2025. The journey from the ‘water stress line’ in 1990 to the ‘water scarcity line’ in 2005 has unleashed adverse effects on public health and the economy. An alarming 80% of supplied water is unsafe, resulting in waterborne diseases causing a 1.44% GDP loss. The per capita annual water availability has plummeted from 1500 cubic meters in 2009 to 1017 cubic meters in 2021, according to the International Monetary Fund (IMF). A study by the National Institute of Health (NIH) estimates a further decline to 274 million acre-feet (MAF) by 2025, creating a demand-supply gap of approximately 83 MAF. Despite being blessed with abundant water resources, Pakistan remains one of the world’s 36 water-stressed countries, as highlighted in Uzair Sattar’s study, “Pakistan’s Political Economy Perpetuates Its Water Crisis.” Sattar emphasizes the need for policies that ensure just and equitable distribution of water-related facilities, drawing parallels with EU strategies. While considerable efforts are being made to tackle this challenge, Pakistan must devise policies to monitor water distribution with justice and equity. To address the challenges of climate change, water management, conservation, and distribution, scholars, specialists, and startups are actively engaged in both government and private sectors. Dr Shakeel Hayat, a climate change and WASH specialist, proposes a shift from a distributive to an integrative bargaining system, also known as the benefit-sharing approach. This approach advocates for the equitable distribution of resources based on need and requirement, departing from the conventional population-centric distributive system. The distributive bargaining system, favoured by the economy for its potential to generate income through population growth, needs to catch up when applied to natural resources. Dr Hayat’s approach could address domestic water security and contribute to international efforts in combating climate change. DistributingDistributing funds equitably based on countries’ needs could be a significant step in resolving global climate issues. For instance, while Pakistan’s economy heavily relies on water due to agriculture being the prime sector, nations like the USA and the UK have diverse means of contributing to their economies. Sattar suggests that Pakistani policymakers can enhance domestic water security by encouraging the transfer of water resources between different sectors within the country’s water-intensive agricultural industry. Additionally, they should promote competitiveness in non-agricultural export sectors and reassess the equitable taxation of water usage, particularly regarding the Colonial Canal and Drainage Act of 1873. International financial institutions and bilateral lenders can play a crucial role in encouraging these policy changes by adopting eco-friendly lending, trade, and investment practices. To support these efforts, international financial institutions may allocate donor states’ voluntary Special Drawing Rights (SDRs) based on demonstrated progress toward environmentally focused Sustainable Development Goals (SDGs). Bilateral partners interested in investing in Pakistan’s agricultural sector through the recently established Special Investment Facilitation Council (SIFC) can direct resources toward less water-intensive crops. In conclusion, Pakistan stands at the precipice of a water crisis, necessitating urgent and comprehensive actions. The global community, international institutions, and bilateral partners must collaborate to address this impending catastrophe. Only through collective efforts and innovative policies can Pakistan navigate the challenges of water scarcity, ensuring a sustainable and prosperous future for its people. Yusra Naeem is a researcher and MS Scholar and can be reached on yusran.281998@gmail.com