This study is investigating the impact of various influencing factors on water stress during the time period from 1980-2014. In order to analyze this impact the study employed time series econometrics technique namely ordinary least square method (OLS). Water stress index has represented by per capita water availability indicator. The results clearly demonstrate that population, GDP per capita, electricity production, deforestation, total area under cultivation and industrial development have positive and statistically significant impact on water stress in Pakistan. Besides, temperature and rainfall have negative impact on water stress. On the basis of the results of this research it is recommended that deforestation should be banned and area under cultivation should be restricted to produce low water consuming agricultural products. Electricity production should be shifted from thermal to hydel electricity production. There is need to increase storage capacity by the constructions of small dams and reservoirs to absorb water. Supervisor:- Dr. Anwar Hussain