The present study is conducted to find the role of financial, corporate governance and macro-economic indicators on banking sector performance of Pakistan for the period of 2005 to 2015. Results show that these factors have a great role on performance of banking sector of Pakistan, where performance indicators are:(i) Return on Equity (ROE),(ii) Return on Assets (ROA) and (iii)Net Interest Margin (NIM). Corporate governance practice in banking sector plays a vital role in improvement of bank’s performance. There is high involvement of government and other authorities like SECP in banking sector therefore banks corporate governance differs from corporate governance of other business. To eliminate unnecessary risks by management and financial soundness can be ensured by implementation of corporate governance practice. Concluded on the basis of observation that increase in earnings per share results increases in bank’s performance. On the other hand, banks can gain the public confidence by maintaining the Minimum Paid-up Capital Requirement (MCR) which ultimately improves the bank’s performance. Continuous improvement in mechanism of corporate governance structure of banks is needed moreover there is need that NonPerforming Loans to Total Loans Ratio (NPLTL) and Loan Loss Provisions to NonPerforming Loans Ratio (LLPNPL) values should be at lower side. Lower the ratio better its performance. Risky assets are managed by Pakistani banks so well that capital adequacy ratio is insignificance to bank’s performance. Despite all this there is improvement is needed to compete with international level. The results show that internal mechanism such as board size, board independence, CEO duality and transparency; external mechanism (capital adequacy ratio, minimum paid up capital and macroeconomic variable (GDP growth) are important determinants of performance of banks in addition to financial determinants. Supervisor:- Dr. Attiya Yasmin Javed