An important feature of the Uruguay Round was the agreement by the developed countries to abolish the Multifibre Arrangement quotas that (with their predecessors) have restricted exports of textile and clothing products from developing countries for almost forty years. This iniquitous system of quotas violated all the fundamental principles of the multilateral trading system, and discriminated against the poorest countries seeking to move up from reliance on commodity trade towards an emphasis on manufactures.However, the prospective abolition of these quotas will not necessarily generate automatic benefits for individual countries. It will create opportunities but will also expose them to additional competition from other, formerly restrained, exporters. The outcome for any individual country will depend heavily on its policy response. This thesis studies the case of Pakistan and makes suggestions to help Pakistan streamline its policies for increasing its gains from quota abolition in the post ATC scenario.