Government price policy in Pakistan affects both the supply and demand of wheat. The wheat market has been established in a particular idiosyncratic manner in Pakistan, and a thorough appraisal of policy needs to take this into account. Hence, to analyse various policy interventions, this study develops a multi-level wheat market model. After considering the real world aspects of the wheat marketing chain, a conceptual framework is developed involving five market levels. This is then translated into a multi-equation econometric model. The model is based on secondary time series data from 1971 to 1996. It consists of equations representing supply, demand, stock holding, importing and price formation. The model is used to estimate changes in consumer surplus, producer surplus and government expenditures, resulting from proposed policy changes.