Abstract: Cotton, a cash crop, being major source of foreign exchange and domestic earnings takes a significant status in the development of economy of Pakistan. Punjab province accounts for major contribution in cotton production and it has shown a tremendous increase in its production from 735 thousand bales in 1947-48 to 6628 thousand bales in 1988-99. During the same span of 52 years, area under cotton has increased from 2217 thousand acres to 5641.03 thousand acres with 154.44 percent increase over the period. Per acre cotton yield has increased by 235 percent i.e. 1.6 maunds 1947-48 to 5.36 maunds in1998-99. The myopic view taken by the statistical tools indicate that percent contribution to change in total production of cotton owes a great extent to per acre yield than the area shown under cotton crop particularly during the last three decades. Though cotton production has shown a considerable increase but significant level of potential yet remains to be exploited by increasing per acre yield and more area under cultivation.