Journal of Economic Cooperation and Development, 30, 3 (2009), 43-62 Doha Round of WTO and the Rice Sector of Pakistan Tahir Mukhtar  This study evaluates the impacts of the trade liberalization under Doha Round on basmati rice in Pakistan using a partial equilibrium model. Price integration analysis shows that there is a stable long-run relationship between farm gate price and wholesale price and between wholesale price and world price of basmati and non-basmati rice. Direction of influence is from world price to wholesale price and from wholesale price to farm gate price. The welfare analysis indicates a net welfare gain for the nation as a whole under the Doha Round agricultural trade liberalization. 1. Introduction Rice is a highly valued cash crop that earns substantial foreign exchange for Pakistan. It is annually planted on an area of over 2.5 million hectares and accounts for 18 percent of the area under cereals and 10 percent of the total cropped area. The annual rice production averaging 5.0 million tons in recent years has constituted 18 percent of the overall output of cereals, and 17 percent of the value added by major crops (Pakistan, 2006-07). Rice has two distinct varieties namely non-basmati rice, which is a short duration variety and basmati rice, which is a long duration variety. Basmati rice accounts for nearly 63 percent while non- basmati rice for the remaining 37 percent of total rice area in Pakistan. The contribution of other varieties, in the total area and production of rice is almost negligible. Pakistan is one of the ten exporting countries that dominate world rice trade. The stable growth of rice production has helped Pakistan to not only meet increasing domestic demand but also have surplus for export.  The author is Assistant Professor at the Department of Economics, Fatima Jinnah Women University, Rawalpindi.