Pakistan’s agriculture sector is in a precarious state. I think the blame rests with the state, its policies and agents, more than the vagaries of nature. But on the bright side we can influence public policy far more than the moods of nature. The challenges to the sector also offer fresh opportunities and incentives to make the agriculture sector a vibrant partner, if not leader, of the national economy. There are numerous policy issues given the multiple and competing interests of stakeholders. These include small and large landowners and livestock holders, landless tenants and labourers, private market intermediaries (traders, processors and manufacturers), consumers, not-for-profit private organizations, and the public sector departments and agencies. Four major policy issues that need to be addressed are: A suitable policy framework is premised on three propositions. First, we should use a ‘farming systems’ approach, in which crops and livestock are viewed as two interdependent parts of the production regime adapted to the changing resource endowment and markets.