Since the petroleum industry is one of the major contributors in the growth of economy, this book examines the performance of petroleum industry of Pakistan. It examines the industry's performance over a period of five years i.e. 2007 - 2011. For this purpose, we have selected three major petroleum companies which are as followed: 1. Pakistan State Oil Company Limited (PSO) 2. Shell Pakistan Limited (SPL) 3. Attock Petroleum Limited (APL) The principal objective of this report is to analyze and interpret the financial health, financial performance and stability of the petroleum industry of Pakistan and to assess and evaluate the financial performance of the selected petroleum companies. This work also focuses on examining the financial state of affairs of the selected petroleum companies and to test their financial strengths and weaknesses. It also identifies and pinpoints the causes of better financial performance of the industry and selected companies and suggests measures for further improvement.