Current study describes the effect of privatization on banking profitability in Pakistan. Process of privatization started from 1988 due to non-satisfactory performance of banks, as there was lack of virtuous planning, weak operations, loan sizes and many other similar factors. Allied Bank Limited (ABL), United Bank Limited (UBL), Muslim Commercial Bank Limited (MCB) and Habib Bank Limited (HBL) were privatized in order to attain efficiencies and all these banks showed improvement in various means. Graphical as well as analytical analysis is performed to judge the impact of privatization. Study has been divide in two parts pre-privatization and post-privatization and data was collected from the State Bank of Pakistan library (Karachi). Selected variables for the research are ROA, ROE, EPS, Fixed Asset Turnover and Bank Size. Dual methods have been selected which includes the Ratio analysis and the Paired-Sample T Test model to derive desired results. The results suggested that there is a significant positive impact of Privatization of particular banks on their profitability in banking sector of Pakistan Supervisor: Mr. Ali Kemal