Water scarcity poses an existential threat to the agrarian economy of Pakistan, where reliance on traditional irrigation practices jeopardizes the sustainability of high-value crops. This study assessed the multi-dimensional impacts of adopting drip irrigation systems on onion production, resource use efficiency, and the socio-economic livelihoods of farmers. A Quantitative survey was conducted with 180 farmers, with an equal proportion of adopters (n=90) and non-adopters (n=90). Results revealed that drip irrigation significantly increased onion yield, averaging 8,950 kg/acre compared to 6,720 kg/acre under traditional flood irrigation (t=7.52, P=0.000). Gross margins were also higher for adopters (PKR 267,250) versus non-adopters (PKR 181,600), with a superior benefit-cost ratio of 2.97. The Cobb Douglas production function showed water use had the highest efficiency (0.284), followed by fertilizer (0.221) and labor (0.145), indicating that efficient water management is critical for maximizing productivity. Socio-economic benefits included higher yields, reduced costs, and improved water conservation, while key constraints were high initial investment costs (Mean=4.71) and lack of technical knowledge (Mean=4.55). Chi-square analysis indicated that education (χ²=16.85, P=0.001), farm size (χ²=21.47, P=0.000), and access to credit (χ²=18.62, P=0.000) significantly influenced adoption decisions. Findings highlight the need for subsidies, credit facilities, and farmer training to promote sustainable irrigation practices and enhance rural livelihoods.
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