The study examines the relationship between financial development and agricultural output in Pakistan using annual data for the period 1972-2010. The study employs models to capture the interrelationship among financial development, agricultural investment, agricultural credit and agricultural output. The specific objective of the study is to examine the impact of financial development on output of the agriculture sector. To characterize the indirect impact of financial development on agricultural output, the study has also examined the impact of financial development on agriculture credit and agriculture investment. The results suggest that financial development does not exert statistically significant impact on agricultural output, agricultural credit, and private agricultural investment. Supervisor:- Dr. M. Idrees Khawaja