Water is the requirement of life and a backing force of socio-economic development. Due to some human interference in natural activities, the global environment is changing rapidly. Resultantly, water resources are on the verge of diminution. The case of Pakistan is much alarming as it is an agricultural country depending on canal water. Any shortage of water will near ly defunctionalize the canal system of Pakistan. Some experts claim that Pakistan may become dry by 2025 if she did not build any big water storage. From the economic point of view, the agriculture portion in Pakistan’s total economy is 21% to Domestic Gross Product (GDP) and above 45% to the labor force. K alabagh Dam can be fruitful in these circumstances because it will generate 3600 Mega Watt (MW) electricity and will store 6.1 Million Acre Feet (MAF) water. After discussing the water crisis in Pakistan, this paper is analyzing the role of KBD as a remedy to water scarcity, electricity shortfall as well as the politics of water.