Agriculture sector is a dominant driving force for the growth and development of the national economy of Pakistan, making the country predominantly an agrarian state. Agriculture is the source of livelihood for 44.7% of the country’s total employed labour force. Its present share in GDP is 21.8%, and this contributes to over 79% to the foreign exchange earnings of the country by exporting raw material and semi-processed and processed agricultural products. Pakistan has been ranked the sixth most populous country in the world with the total population of 167 million in 2010. About 67% of the total population resides in the rural areas and directly or indirectly depends on agriculture. Based on these facts and figures, the sector is viewed as the lifeline of country’s economy. Nevertheless, poverty in Pakistan is largely a rural phenomenon; therefore, the development of agriculture must be a principal vehicle for alleviating rural poverty. Unfortunately, the country’s agriculture is negatively affected by various issues and constraints which have been enlisted in this chapter. These issues, in turn, influence Pakistan’s developmental activities, particularly in the rural areas. It is believed that the revitalization of rural development will provide a sound foundation for broad-based accelerated economic growth. In this chapter, an effort is made to demonstrate that sustainable agriculture and holistic approach are imperative to achieve rural development. The analysis leads to the conclusion that sustainable agriculture results in sustainable rural development, and that this is a reality, not a myth.