This study attempts to examine the impact of fiscal deficit, macroeconomic variables, and Crisis on the sensitivity index of stock prices of Pakistani Stock Exchange, Pakistan. The period this study takes to examine the relationship spreads from 1980-2018. This study has estimated the time series model by using the Auto-Regressive Distributed Lag (ARDL) technique. The results of this study show how Fiscal deficit, money supply, taxes, inflation, foreign direct investment, exchange rate, and Crisis significantly affect the prices of the stock exchange in the long run. While the unemployment rate has a negative but insignificant relationship with the stock price variation in the long run. In the short run, the study finding shows that the direction of relationship the variables in the long run and short run are the same. The unemployment in short-run findings is insignificant which shows that the behavior of investors in the short and long run is not bothered by the unemployment rate in the case of Karachi stock exchange which nowadays is called the Pakistan Stock Exchange. It is need of the time that the government should adopt policies appropriate to improve (reduce) fiscal deficit Supervisor:- Dr. Saud Ahmad Khan