This study aims to find out the nexus of spending on public goods and agriculture value addition in Pakistan. To this end, time series secondary data has been used from 1972-2013, taken from World Development Indicator (WDI) and Statistical Supplement to Economic Survey (SSES). To check stationarity of the data Augmented Dickey Fuller (ADF) test is used. Further to assess the relationship, Auto Regressive Distributed Lag (ARDL) model and Error Correction Model (ECM) has been used. Estimation shows a positive and statistically significant effect of public goods’ spending on agriculture value addition in the long-run. Furthermore a positive effect of other major inputs on agriculture productivity is witnessed both in long and short-run. Study recommends government intervention for agricultural growth through spending on health, education and transport and communication. More investment on human capital in the form of training and technical education should be made. Supervisor: Dr. Anwar Hussain