This research has investigated the sustainability of growth of nonfinancialfirms in case of Pakistan. For this purpose, explanatoryvariable of earnings per share and total assets turnover were used ascontrolling factors and liquidity, size and cash flows were used asindependent variables. Balanced panel of 27 firms with 24 annualtime dimensions has been used from 1988 to 2011. Model specificationcriteria were in favour of pooled least squares but due to heterogeneityof firms, fixed effect model was opted for. The results of research wererobust against internal growth but not robust to sustainable growthindicating that, in case of Pakistan, the leverage impact, which is thekey difference between internal growth and sustainable growth mightbe playing some unexplained role for the growth of nonfinancial firms.For steady, regular and internal growth, liquidity and cash generationability are playing a significant role but fail to support growth in thelong run and in a sustainable way
