AGRICULTURAL POLICY AND WHEAT PRODUCTION: A CASE STUDY OF PAKISTAN

The study aims to determine the effect of Agriculture Policy on wheat production in Pakistan. The effect of change in tax/subsidy on agricultural productivity depends upon their respective sensitivities, which is reflected through the value of Nominal Protection Coefficient (NPC). NPC is a ratio between border prices and prices received by the local producer. Using the data for the period 1971-2006, the study concludes that the government policy has insignificant effect on wheat production though the sign of its coefficient is positive. JEL Classification: H23, H24, Q18.