This study undertook an assessment of 24 physiochemical parameters at over 1094 sites to compute the water quality index (WQI) across the upper and central Punjab regions of Pakistan. Prior to the WQI calculation, an analytical hierarchy process (AHP) was employed to assign specific weights to each water quality parameter. The categorization of WQI into distinct classes was achieved by constructing a pairwise matrix based on their relative importance utilizing Saaty’s scale. Additionally, the groundwater quality status for irrigation and drinking purposes across various zones in the study area was delineated through the integration of WQI and geostatistical methodologies. The findings revealed discernible heavy metal issues in the Lahore division, with emerging microbiological contamination across the entire study region, potentially attributed to untreated industrial effluent discharge and inadequately managed sewerage systems. The computed indices for the Lahore, Sargodha, and Rawalpindi divisions fell within the marginal to unfit categories, indicating water quality concerns. In contrast, the indices for other divisions were in the medium class, suggesting suitability for drinking purposes. Scenario analysis for developing mitigation strategies indicated that primary treatment before wastewater disposal could rehabilitate 9% of the study area, followed by secondary (35%) and tertiary (41%) treatments. Microbiological contamination (27%) emerged as the predominant challenge for water supply agencies. Given the current trajectory of water quality deterioration, access to potable water is poised to become a significant public concern. Consequently, government agencies are urged to implement appropriate measures to enhance overall groundwater quality for sustainable development.