Basically; there are two type of banking systems working in Pakistan i.e. Islamic banking system and conventional banking system. The Islamic banking system is based on principles of Islamic law (Shari‟ah) and directed by the Islamic economy. While, conventional banks are working on manmade principles, where the predetermined interest rate is the main activity. This study analyzes the performance of Islamic banks and Conventional banks of Pakistan during the period 2005-2018. The objectives of this study is to compares the financial ratio analysis, which includes {return on Asset (ROA), Advances to Deposit ratio (ADR), Capital adequacy ratio (CAR), Investment to Liability Ratio (ILR), Equity Multiplier Ratio (EMR) and Cash Flow to revenue ratio (CFR)} and CAMEL model analysis (Capital adequacy, Asset Quality, Management Quality, Earnings and Liquidity) of Islamic banks and Conventional banks in Pakistan. The results of the study indicate that Conventional banks in Pakistan have better financial performance than Islamic banks. In term of ROA, ADR, ILR and EMR Conventional banks are performing better than Islamic banks. In term of CAR and CFR Islamic banks are performing better than conventional banks. In term of CAMEL model, Asset quality, Management quality and Earning, Conventional banks are performing better than Islamic Banks. Capital adequacy and liquidity perspective Islamic banks are performing better than Conventional banks. Supervisor:- Dr. Nazia Bibi