This study aims to explore the relationship between environmental quality and institutional quality. The paper has tested the validity of environmental Kuznets curve (EKC) for selected (Bangladesh, India, Pakistan) SAARC countries in case of carbon dioxide and sulfur dioxide emissions. The panel covers the time period between 1984-2011 for CO2 and 1984-2008 for SO2 emissions. This analysis has used Panel Fixed Effect Least Square technique. The results showed that (EKC) hypothesis holds for both type of pollutants in the selected countries. Quality of governance and political institutions may lower down the turning point of (EKC) in both cases. It has been found that turning points are 119US$ and 1325US$ higher for CO2 and SO2 respectively in absence of better quality of governance and political institutions. The results suggest that there is a need of cooperation and strict environmental laws at regional and country level. Supervisor:- Dr Usman Mustafa