The study examined the impact of economic development and population growth on environment degradation in Pakistan. This study is continuity in the literature and an effort to present a clear association of environmental degradation with economic development and population growth in a developing economy like Pakistan. Therefore the results of present study are helpful to design an effective policy to overcome the problems of environmental degradation and population growth. To investigate the relationship between environmental degradation and economic development the study used a time series data for the period from 1972 to 2010. Elementary data analysis showed that all the variables are skewed. Test of multicollinearity was performed through pair-wise correlation matrix which confirmed that there is no multicollinearity between the dependent and independent variables. The unit root in time series is also examined and the results of Augmented Dickey Fuller test (ADF) suggested that time series are not stationary at the established level but all the series are stationary at first difference. Although, the concept of EKC is still very open, present study empirically verified the inverted U-shape relationship between per capita GDP and environmental degradation in Pakistan. Ultimately, these findings confirmed the existence of EKC for Pakistan. The results also showed that the „„turning point‟‟ level of income is 2457 USD, where emission of Carbon dioxide is at maximum level in Pakistan. The empirical results showed that economic development and environmental degradation have positive relation which suggests that increase in the level of economic development also a source of environmental degradation. Moreover, in developing countries like Pakistan, the struggle to raise economic growth is the primary objective while environment protection is a secondary priority. Due to that the struggle to raise per capita income in Pakistan is also the reason of environmental degradation. Though, population growth and environmental degradation moved in same direction while population growths always kept under pressurize natural resources and environmental conditions. Same relation has been found between population density (population growth) and Carbon dioxide emission (environmental degradation) in Pakistan. All this is happened just because of unplanned population and urbanization growth. Results confirmed that unplanned urbanization, population growth, energy consumption, unplanned economic development process and huge growth in automobile have significant and positive impact on environmental degradation for the case of Pakistan. The study shows that urbanization is not helping to reduce the poverty but it may help to increase the level of environmental degradation in Pakistan. Energy consumption has dual impact on economy and environment. Thus, it is source of environmental degradation in Pakistan. This growth in energy consumption is also giving birth to automobile transport and heavy traffics on roads or in metropolitan. Thus environmental degradation is all around due to urbanization and energy consumption in water, sanitation, noise and air pollution. It was also reported that the incidence of poverty in Pakistan is also a major cause of environmental degradation. Therefore, it may be concluded that the achievement of sustainable development is very crucial for developing economies like Pakistan. Therefore the adoption of sustainable development policies may help Pakistan to attain the targeted growth rate on one hand and lessen the depletion of natural resources in future on other hand.