The General Agreement on Trade in Services (GATS) is a set of multilateral, legally enforceable rules governing international trade in services. These rules are aimed at enhancing international trade in services including through promotion of progressive liberalization, free competition among service providers, and open access to national markets with out any prejudice or any pre-conditionality. The agreement regulates the cross-border flow of trade and investment in services and provides important opportunities and threats for developing countries especially in higher education field. However, the potential impact of GATS is still unknown as it is a new agreement yet to be implemented fully. With out examining the purpose, motivations, content, thrust and tone of GATS and specific threats and promises it holds for the economy, society and cultural enfoldments of signatories, they would be grouping into dark. Instead of being positive impacted, negative fallout may be in store for them. Considering the role and importance of higher education for sustainable social, political and economic development in Pakistan it is imperative for the appropriate quarters to investigate pros and cons attached to this new set of globalization process. To better understand this ongoing process the research explores the viability of options for our own institutions to avail the opportunities being offered by foreign market like Middle East, Central Asia, and South Asia etc for performing an efficient role as educational providers across border and vise versa. The research is based on the belief that insightful evaluation of consequence of opening education at various levels of GATS is essential for the formulation of rational, prudential and internationally acceptable policy and response mechanism on the part of Pakistan. Therefore, the dissertation aims to furnish helpful inputs to the authorities managing higher education in Pakistan so as to enable them to articulate realistic proposals, preempt the impact of negative effects attached with the agreement, execute necessary safeguards and reap benefits if any at appropriate stage. The resultant awareness is likely to smoothen higher education system in Pakistan compatible with the dictates of ongoing iiiglobalization and to withstand the competitive environment shaped by the developed world. Depending on the sagacity of policy and organizational intervention the intended expansion in trade and promotion of development can be realized and perils of disposed trade rise by foreign owned and controlled academic institutions can be avoided. Research endeavours to highlight the stakes and the pearls of intended participation of the third world in the forthcoming round of negotiations of GATS and the future of competitiveness of Pakistan’s higher education system hinges upon the reduction of prospective risks and maximization of our competencies.