We propose a torque and pitch control scheme for variable speed wind turbines with permanent magnet synchronous generator (PMSG). A torque controller is designed to maximize the power below the rated wind speed and a pitch controller is designed to regulate the output power above the rated wind speed. The controllers exploit the sliding mode control scheme considering the variation of wind speed. Since the aerodynamic torque and rotor acceleration are difficult to measure in practice, a finite time convergent observer is designed which estimates them. In order to verify the proposed control strategy, we present stability analysis as well as simulation results.