The present study is conducted to find the impact of bank specific, corporate governance, regulatory and macroeconomic variables on the profitability and efficiency of banks functioning in Pakistan for the period 2006-2014. The results highlight the factors that play an important role in defining the profitability as well as efficiency of the banks, where profitability is measured by return on assets (ROA), return on equity (ROE) and net interest margin (NIM) and efficiency is calculated by Data Envelopment Analysis through radial and non-radial methods. On the basis of our findings we conclude that the increase in bank size and Earning Per Share increases the profitability of the banks. Whereas if MCR is maintained it gains public confidence and contributes towards profitability. Banks should improve its corporate governance mechanism and should keep the ratio of non-performing loans to total loans and loan loss provisions to non-performing loans at a lower level because if they exceed it can be damaging to the banks’ strength. Supervisor:- Dr. Attiya Yasmin Javid