www.ccsenet.org/ass Asian Social Science Vol. 7, No. 7; July 2011 ISSN 1911-2017 E-ISSN 1911-2025 90 Global Financial Crisis: Macroeconomic Linkage to Pakistan’s Agriculture Professor Dr. Abdul Latif Chairman Department of Management Sciences Islamia University Bahawalpur, Pakistan E-mail: drabdullatif@hotmail.com Muhammad Suhail Nazar Assistant Professor, Deptt: of Management Sciences Islamia University, Bahawalpur, Pakistan E-mail: Suhail_nazar@yahoo.com Dr. Maqsood Zia Shah Assistant Professor, Deptt: of Statistics SALU-Khairpur, Pakistan Faiz. M. Shaikh Assistant Professor, Deptt: Agri:Economics SZABAC-Dokri-Larkana, Sindh, Pakistan E-mail: faizanmy2000@hotmail.com Received: September 19, 2010 Accepted: January 10, 2011 doi:10.5539/ass.v7n7p90 Abstract This research investigates the impact of Global Financial Crisis Macro economic linkages to Pakistan’s Agriculture. Macroeconomic shocks can impact agriculture more strongly than factors that affect the sector directly. Data were collected from various secondary sources. It was revealed that recent Global financial crisis has negative impact on the Trade growth in Pakistan. It also affects the Price, production, consumption and trade. It was further revealed that Pakistan’s exports have fallen substantially, through mainly because of a drop in the world trade prices rather than export volume. Keywords: Global, Financial, Crisis, Macroeconomic, Linkage Introduction Pakistan is facing problems because of the Global financial crisis with fast depleting international reserves there is a growing fear that the country may be forced into defaulting on its foreign obligations. It was because of this fear that on October 6, both Standard & Poor and Moody’s, two of the world’s largest rating agencies, downgraded Pakistani bonds. One such bond will run out of its term early next year and the investors have begun to fear whether Pakistan will be able to pay them back. Government data shows that inflation adjusted house prices nationwide on average essentially reached from 1953-1995 (Baker.D, et. al., 2002). Robert shiller constructed a data series going back to 1895 which showed that real house prices had been essentially unchanged for one hundred years prior to 1995. It now appears that the financial crises that have gripped America and Europe will also affect the real economies of these countries like Pakistan. Most experts now believe that America and Europe at this time stand at the threshold of deep recessions. The first signs of these have already begun to appear. In September, Americans lost 160,000 jobs; it is expected that by the end of the year there will be a reduction of one million jobs in the United