Exhaustive crops such as cotton require potassium (K) in copious amounts as compared to other crops. High yielding cultivars in cotton-wheat cropping system, have further increased its demand in cotton growing areas of Pakistan. As cotton is grown in arid and semiarid areas, therefore often prone to water deficiency. The reproductive growth particularly flowering and boll setting are highly sensitive to low soil water potentials, where enough K supply can play a vital role. In this two-year field studies, three cultivars (early, mid and late maturing) were cultivated at two K fertilizer levels 100, 200 kg K ha⁻¹ along with control with no K fertilizer application at two irrigation levels. In first irrigation level, water was applied as per full irrigation schedule, while in water deficit irrigation water was applied at deficit irrigation schedule started after flowering till harvesting. It has been revealed that K application has impact on boll setting as well as seed cotton yield, however early and mid-maturing cultivars are more responsive to K fertilization. Furthermore, irrigation level had significant impact against K fertilization and relatively better response was observed in deficit irrigation as compared to full irrigation. Nevertheless, fiber quality parameters were unaffected by K fertilization. Considering the best benefit cost ratio under water deficiency, it is concluded that 100 kg K₂O ha⁻¹ should be applied at the time of seed bed preparation for economical seed-cotton yield of early maturing Bt cotton.