Virtual Water Trade and Its Implications on Water Use Efficiency and Sustainability in Pakistan

Abstract

This study analyzes inter-provincial and international virtual water trade of selected crops and examines its implications for water-use efficiency and sustainability in Pakistan. Using data for 2020–21, the direction and magnitude of virtual water flows were assessed for major crops, fruits, and vegetables across provinces. The results show that Khyber Pakhtunkhwa (KPK) was a major net importer of virtual water (9,168 Mm³), followed by Sindh (2,616 Mm³) and Balochistan (1,090 Mm³), reflecting substantial regional imbalances in water use and crop production. Rice emerged as the leading exporter of virtual water, while cotton lint and wheat dominated virtual water imports. Comparisons with global benchmarks reveal that Pakistan exhibits lower crop yields and higher water use per unit output for most crops, indicating inefficient water utilization, except in cotton lint production. Monetary returns per cubic meter of water were highest for cotton lint, followed by vegetables and fruits, highlighting the potential for reallocating water toward higher-value crops. The findings underscore the need for policy-driven crop specialization based on provincial comparative advantage and water availability. Integrating virtual water trade considerations into agricultural and water resource policies can improve water-use efficiency, reduce pressure on scarce water resources, and enhance the sustainability and climate resilience of Pakistan’s agricultural sector.