This study highlights the interaction among fiscal and monetary policy and the impact of this interaction on stock market of Pakistan. The study investigates the level of interaction between fiscal and monetary policy and from this it suggests there is minimum degree of coordination as 34% of interaction exist. This study practices structural vector autoregressive(SVAR) on quarterly data of macroeconomic variables and stock prices from stock market during the specified time period of 1998Q12017Q2. The empirical findings conclude that policy variables are having positive and highly significant impression on stock prices. These results are consistent with the fiscal exclusion model where fiscal policy variable is excluded to check the importance of fiscal policy in the model. The study recommends the improvement of interaction among macroeconomic institutions and their impact on stock market to boost up economy of Pakistan. Supervisor:- Dr. Hafsa Hina