This paper reviews Pakistan'sagriculture performance and analyzes its agriculture andwater policies. It discusses the nature of rural poverty andemphasizes the reasons why agricultural growth is a criticalcomponent to any pro-poor growth strategy for Pakistan. Itsupports these arguments by summarizing key results fromrecent empirical analysis where the relative benefits ofagricultural versus non-agricultural led growth areexamined. The results also provide an illustration of farmand non-farm linkages. It summarizes recent performance ofthe agriculture sector, and discusses key characteristics ofits sluggish productivity growth. Three key issues relatedto increasing productivity are discussed: namely technology,water use and water management, and policy reforms relatedto markets and trade that can strengthen the enablingenvironment and contribute to the promotion ofdiversification towards high value agriculture.