SAARC countries are, in general, under developing economies having less remarkable growth rate. This study focuses on to find out the impact of financial and fiscal variables on economic development of 5 SAARC countries, namely; Pakistan, India, Nepal, Sri Lanka and Bangladesh. Remaining 3 countries of the region are omitted due to the absence of stock markets in these countries, stock markets being an important part of the study. Data on Financial and macroeconomic measures have been collected for the period of 20 years from 1994 to 2013. Financial measures include Money and quasi money (M2), Trend in Foreign Exchange reserves (TFER), Private Sector Credit by financial institutions (PSC) and Value of Stock Traded (VST) and macroeconomic measures include Trade balance (TB), Consumer price Inflation rate (IR), Exchange rate (ER), Foreign Direct Investment (FDI) and Gross fixed capital formation (GFC) as independent variables and Growth in Per Capita Income (GPCI) as dependent variable. Pooled OLS regression is used for panel analysis and as data had heteroskadasticity issue so VCE (robust) is used for minimizing the impact of standard errors. The results of the study support the positive impact of financial and macroeconomic measures on economic development of SAARC countries.