Multan, Pakistan - Agriculture dominates this arid district in the heart of Punjab, where the majority of the grain that feeds this country's burgeoning population is cultivated. And access to water dominates agriculture.

Like most Punjabi farmers, Sajid Mehdi relies on a tube well, powered by an electric pump that draws water from deep below the dusty ground, enough to irrigate cotton crops.

But the pumps are problematic. The spiraling cost of electricity renders them exceedingly expensive to run, and frequent blackouts render them inert for long hours in the work day. When the pumps break down, farmers like Mehdi have no choice but to find the quickest, but far from the best, solution.

"Water is the backbone of my livelihood," Mehdi said. "My crops can't grow without it, so we are willing to pay whatever it takes. We all tend to go for the cheapest solutions for any problems with the pumps, and they don't last."

Old pumps not only break down frequently, they are also notoriously inefficient, accounting for a huge percentage of the burden on an already overextended electrical grid. Agriculture accounts for 20 percent of Pakistan's gross domestic product, yet consumes one third of the country's electricity.

Each month, Mehdi would grimace as he opened his electric bill knowing it would be higher than the last. He had heard about higher quality, energy efficient pumps, but dismissed the idea as too expensive.

Then one day a local pump representative told him about the USAID discount and offer of a free assessment of his current setup. Soon after, a USAID team visited his farm and confirmed that his pumps were operating at a fraction of their capacity yet consuming a huge amount of power.

"Fifty percent off a brand new pump is still a substantial investment," said Saeed Anwar, an Energy specialist at USAID. "The program also helps beneficiaries access finance."

"Our experience has shown that offering a substantial, but not total, subsidy for the pumps gets better results than simply giving them away," Anwar said. "The farmers retain pride of ownership, and get a sense that they are not only helping themselves, but helping Pakistan overcome its energy crisis."

The program, which USAID is implementing in partnership with the Multan Electric Power Company, will eventually co-finance 11,000 new pumps to farmers all across Pakistan's agricultural heartland, and assist the participating farmers in reducing power consumption and cost.

The tube well program is just part of a comprehensive effort by USAID to address Pakistan's chronic energy shortfalls, which damage commercial and industrial, as well as agricultural productivity.

USAID will upgrade several key hydroelectric power stations at some of the country's largest dams, and help improve performance at some of the country's electricity distribution companies.

Mehdi is so pleased with the performance of the new pump that he is determined to replace the two others on his farm.

"When I replace the two other pumps I have I can save even more," he said. "I will use these savings for my children's education. I am delighted to be a part of this positive change."