This policy paper focuses on theincentive framework for Pakistani agriculture, with emphasison trade and price policies. It first presents a synthesisof major trends in the performance of the sector andanalyzes Pakistan's extraordinarily complex, opaque anddiscretionary, and continually-changing trade regime. Itpresents a disaggregated analysis of the border measures forthe selected products (trade and price interventions vary byproduct), and estimates the joint effect of trade andprocurement policies on farm prices, captured by directprice comparison. It concludes by providing policyrecommendations emphasizing on the revision of trade regimeto eliminate quantitative restrictions and to modify tariffsin the direction of greater equality, a positive, moderateand uniform tariff on imports across the board as the onlyborder measure for import competing products.