Admittedly the rural non-farm sector has immense contribution to the growth, employment generation and poverty alleviation in the developing world, adequate assessment of the size, composition and structure of activities of this segment of the economy is not made in general, Pakistan being no exception. Partly the data limitations explain the relative neglect of research endeavours to focus upon this important sector,part of the reason lies in the intricate and complex interaction of RNF with the rest of the economy thereby defying efforts to delineate and subject it to a competent and rigorous analysis. In this study an attempt is made to provide some ideas regarding the size and structure of RNF sector in Pakistan, the nature of interlinkages between this sector and rest of the economy in particular the agriculture. Also an examination, of the nature of influences different policies have had on the relative size and the nexus between this sector and the rest of the economy, is attempted. The findings of the study are reported in five Chapters.