This study aims to examine the relative effectiveness of fiscal and monetary policy on economic growth. To meet the objective of relative effectiveness, current research estimates the dynamic structure of the fiscal and monetary policies. The study has utilized eight variables covering time-frame from 1976 to 2015. Structural VAR model is used with recursive contemporaneous restrictions approach to measure policies’ shocks, and identify the effectiveness of policies with respect to economic growth. The impulse response function estimates the response of growth to other variables, initially budget deficit and net reserves respond positively while others negatively. The variance decomposition reveals the major variation in growth which is explained by interest rate. The empirical findings show that both fiscal and monetary policies have significant effects on economic growth. Interest rate appeared to be more effective indicator, while budget deficit is the second most effective variable. Therefore results suggest that monetary policy is more effective than fiscal policy in explaining growth. These findings also suggest that both policies can be used as complement to each other, with the motives of stimulating growth. Supervisor:- Dr. Hasan M. Mohsin