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Drip irrigation has long been proven beneficial for fruit and vegetable crops in Pakistan, but the only barrier in its adoption is the high cost of installation for small landholders, which is due to overdesigning of the system. In the present study, the cost of a conventional drip irrigation system was reduced by redesigning and eliminating the heavy filtration system (i.e., hydrocyclon, sand media, disc filters (groundwater source), pressure gauges, water meters, and double laterals).Purchasing the drip system from local vendors also reduced the cost. Field trials were conducted during 2015 and 2016 to observe the productive and economic effects of low-cost drip irrigation on vegetables (potato, onion, and chilies) and fruits (olive, peach, and citrus). The low-cost drip irrigation system saved 50% cost of irrigation and increased 27–54% net revenue in comparison with the furrow irrigation system. Further, water use efficiency (WUE) was found from 3.91–13.30 kg/m3 and 1.28–4.89 kg/m3 for drip irrigation and furrow irrigation systems, respectively. The physical and chemical attributes of vegetables and fruits were also improved to a reasonably good extent. The present study concluded that low-cost drip irrigation increased the yield by more than 20%, as compared with traditional furrow irrigation, and thus, it is beneficial for the small landholders (i.e., less than 2 hectares).