if max tension is fixed then reducing dia will reduce the torque on pulley and vice versa. and as motor can't lift up the mass the torque given by motor is less. so i guess reducing the pulley dia will work. but how will that work practically i don't know.
still the first solution that comes...
A motor can't lift a pale of water for given diameter of pulley. (consider the motor directly connected to the pulley). So, the diameter of the pulley should be Increased or decreased? Why?