In Pakistan considering the importance of rice public policy intervention have long history which is however on decline. To reduce uncertainty and price risk in rice farming the government announcing the support price for basmati and IRRI paddy (GOP, 2006). Before 1996 the export of rice was the responsibility of public sector. At present Private traders handle all exports of rice in Pakistan. There is dire need to conduct international marketing research on basmati rice a traditional export commodity of Pakistan as there is no significant work has seen in the literature. However recently few studies were conducted with reference to rice, including (Apple yard, 1987). In the study the author analyzed the comparative advantage of various crops including basmati rice and found that Pakistan has comparative advantage in basmati production. The author also found that basmati producers in Pakistan were under implicit taxation by policy or market failures. Akhtar et al. (2007) also analyzed economic efficiency and competitiveness of basmati rice production system of Pakistan’s Punjab and argued that basmati rice maintained economic efficiency in domestic resource use as an export commodity and performed advantageous commodity for the country/nation. They also concluded that at farm level, lack of competitiveness is evident by the results and economic incentive structure prevailing, unfavorable for basmati producers. Davidson (1996) argued that due to agronomic factors, there is no significant competitor to Pakistan in the supply of Basmati rice. In the presence of data limitation, it was found that export elasticity of demand for basmati rice was highly inelastic. Akhtar (1999) concluded that prices of basmati will go up and Pakistan will gain in terms of basmati exports. (Hassan, 2013) concluded that rice exhibits very strong comparative advantage and also observed increasing trend and justifying heavy potentials for export growth in global market. Riaz and Jansen (2012) revealed that at the world market level Pakistan has a comparative advantage in cereals (especially rice) and horticultural products