The aim of this study is to find out the socio-economic implications of climate change for Pakistan with special reference to agriculture sector and water resources. The study analyzed previous studies, reports and official data to examine the impact of climate change on these two sectors. Study found out that lack of awareness in the public, low adaptive capacity of the farmers and poor infrastructure are the chief reasons for high vulnerability of communities to climate change. Agriculture output and water resources availability have experienced negative trends in recent years mainly due to climate related disasters. In this respect, National climate change policy was a positive step towards dealing climate change challenge in Pakistan. The document does not cover the issues like which organization or what level of government will be responsible and what would be the time frame of implementation. Moreover, the policy has not provided any measure to address institutional overlap and confusion particularly in the water and energy sector. The role of local governments in policy implementation should have been specifically mentioned in the policy document. There is a dire need to highlight Pakistan's case at the international level, which will be important for getting technical and financial assistance from the donors' community. So far, Pakistan has not been able to gain much financial and technical assistance related to climate change adaptation and mitigation. Moreover, effort has been made to highlight the link between the government, NGOs and donors in effective implementation of National Climate Change policy. The study suggested that the Climate Change Division should be transformed into a modern climate change unit with experts and specialists. So that such unit with climate change experts will be able to effectively deal with climate change matters and implement and deliver projects in best way.