This study uses the Indus Basin Model Revised to assess the impacts of transferring water from irrigation to domestic and industrial use in major cities in Pakistan. Two scenarios are modeled: 1) unlimited groundwater pumping and 2) a groundwater pumping cap of 50 MAF per year. Scenario 1 leads to a small drop in crop profits but a large decline in water tables, particularly in Punjab. Scenario 2 results in a 5.2% reduction in crop profits due to limited water resources. The conclusions recommend more efficient surface water use, compensation for farmers, and further study of alternative water transfer options to balance urban and agricultural needs under water scarcity.