This study examines the effect of political and financial events on returns and volatility of commercial banks which are listed in KSE 100 index. The major political and financial events are selected for particular time period. The daily data are used for the period of Oct, 2007 to Dec, 2018. The generalized autoregressive conditional heteroscedastic (GARCH) model employed to estimate the volatility series. The Impulse Indicator Saturation (IIS) is used to check the impact of political and financial events on returns and volatility of commercial banks. The results refer that all the financial events have significant impact on returns and volatility of commercial banks. Out of 18 political events only 2 have insignificant impact on returns and volatility of commercial banks. The central and commercial banks can be used these results to make satiable policies. Supervisor:- Dr. Saud Ahmad Khan