Impact of Wto’s Trade Liberalization on Selected Food Crops in Pakistan

The study intended to evaluate the impact of WTO on domestic prices, production and consumption of major food commodities like wheat and rice and ultimately their impact on the producer’s and consumer’s surpluses. The farm level impact was also evaluated to chalk out the eventual position at farm level with the purpose to identify necessary policies and actions to cope with the new world situation. The study tries to provide a useful guide to the likely impacts of agricultural liberalization. It was found that openness of the economy would affect the domestic demand, supply and consumption along with affecting the producer and consumer surpluses. Overall the impact of the increase in the international price of wheat would have resulted in a net loss to Pakistan of Rs. 1,875 million during 2004-05 while in case of rice it would have resulted in a gain of Rs. 1,215 million in 2004-05.