This study investigates the impact of financial development (Domestic Credit to Private Sector, Market Capitalization, Financial Deepening and Index of financial development), economic growth, energy consumption and trade openness on environmental degradation (CO2 and CO2e emission) of Pakistan. ARDL co-integration approach is applied over the time series data for the period of 1980 to 2012 to measure long-run and short-run relationship among variables. Zivot and Andrew (1992) structural break unit root is applied to estimate unit root in the presence of structural breaks in the series. Results confirm that all variables in all models are co-integrated. Our results suggest that only market capitalization reduce energy emission in long run. Economic growth, energy consumption and trade openness are the major contributor of energy emission in Pakistan. Our findings also confirm the existence of Environment Kuznets Curve in Pakistan. The reliability of the results is confirmed after the implication of all stability tests. Supervisor:- Dr. Hafsa Hina