Basic economic problem faced by all developing countries is the allocation of inherently limited resources to various alternatives ends. Exploitation of international competitiveness is the most appropriate criteria to act as guiding factor here. The present study is aimed at analyzing the agricultural comparative advantage of Pakistan and its implications for trade development. Four crops wheat, cotton, rice and sugarcane were selected. Policy Analysis Matrix (PAM) provides data for measurement of comparative advantage, competitiveness and policy distortions. Comparative advantage is being...