This study estimates the value of Human Capital Index (HCI) with the help of Watson Wyatt HCI Methodology and relationship of six HR practices (1.Total reward and Accountability 2. Collegial flexible workplace 3. Recruiting and Retention, Excellence and value, creation 4. Communication integrity and value creation 5. Focused HR Service .and value creation 6. Prudent use of Resources) and Market value of Pakistan Stock Exchange Companies (PXE) listed companies. We collect data from 35 sectors of 573 PXE listed companies only 200 companies responded. The study also examines the link between human capital practices and value creation. Smart PLS is used for finding a clear relationship between the usefulness of companies’ human capital practices and shareholder value creation. The correlation between HCI and Shareholder Market Value is 14.76%, which is less than the average correlation value of developed countries. The relationship result are significant where HR practices is well performed while insignificant results are due to lack of understanding. Supervisor:- Dr. Nadeem Ahmad Khan