The main purpose of the study is to investigate the impact of debt and liquidity measures on firm performance of cement industry of Pakistan. For this purpose 16 cement firms are selected and used these firms that’s data is available. OX-Matrix software is used for data analysis. For this purpose secondary data have been collected from 2002 to 2017 for 16 years through annual audited reports of firms and through Business recorder. Five variables are used in which 4 variables are independent and one variable is dependent. Return on asset (ROA) is dependent variable and DER, CR, NWC and AG are independent variables of this study. Using these variables main finding of the study is DER has significant negative relation and CR also significant positive relationship with firm performance. The outcome from the regression estimations showed that debt structure has negative and significant impact on the performance. Current ratio has positive effect on firm performance while net working capital has negative effect. In sugar firms should identify alternative low risk sources of financing to swap with debt financing. Results show that low level of debt and high liquidity are instrumental in improving the performance of firms. Supervisor:-Dr. Saud Ahmed Khan