Cotton is the important cash crop of Pakistan and a major source of foreign earnings. However cotton crop is facing many problems, such as disease and pest attacks. One way to reduce losses caused by disease and pest attack is the use integrated pest management (IPM) practices. Keeping in view the importance of this technique, the present study analyzed the adoption of IPM along with estimation of risk involved in the adoption process. To estimate the cotton yield, two types of production functions (one for adopter and other for non-adopters) were estimated using the regression analysis. Then estimate of regression models was used further in risk analysis. The results of non-adopters of IPM showed that cost of urea bags, cost of nitrophosphate bags, cost of herbicide and rainfall were -0.038, 0.00475, 0.301 and 0.164 respectively and all ofthese significant at 10 percent level.