Journal of Contemporary Issues in Business and Government Vol. 27, No. 2,2021 https://cibg.org.au/ P-ISSN: 2204-1990; E-ISSN: 1806-1813 DOI: 10.47750/cibg.2021.27.02.191 1806 Nexus between Financial leverages, Operating Liquidity & Firm’s Performance: A Panel Data Analysis of Pakistan’s Cement Industry Waqar Ali Ather Bukhari 1 , Muhammad Amjad 2 ,Muhammad Taimur Khan 3 , Asfandyar Rahim 4 Azaz Ali Ather Bukhari 5 , Syed Arshad Ali Shah 6 , Muhammad Nisar 7 1 Department of Economics, Bacha Khan University, Charsadda, KPK, Pakistan. 2 Quaid e Azam School of Management Science, Quid i Azam University, Islamabad. 3 Department of Management Sciences & Commerce, Bacha Khan University, Charsadda, Pakistan. 4 Department of Management Sciences & Commerce, Bacha Khan University, Charsadda, Pakistan. 5 Department of Banking and Finance, University of the Punjab (Gujranwala Campus), Gujranwala. 6 Department of Management Sciences & Commerce, Bacha Khan University, Charsadda, Pakistan. 7 Department of Sociology and Political Science, Bacha Khan University, Charsadda, KPK, Pakistan. Abstract: This study investigates the relationship between financial leverage, operating leverages and industrial performance in the context of Pakistan. For this purpose secondary data have been collected and ratio analysis, as well as, fixed effect model has been used to estimate the results. The Hausman test suggested the presence of cross section heterogeneity. It was established that FL and OL have significant impact on cement sector firm ’s performance and it is also providing close eye view on interrelation between financial management and operational management and their impact on firm success or failure. Keywords: Financial leverages, Operating leverages, Cement industry, Pakistan, Panel regression, Firm’s performance 1. INTRODUCTION Industralization can paly a vital role in the economic development of a country. The industrial revalution in Europe in the nintheen century change the structure of traditional economies and brings economic development and improve the living satandard of the masses. Therefore, in the past, researcher carried out a number of studies to anlayze the effect of industrialization on economic growth and economic developmet. Industy is composed of fims, recently, in the every business, a major objective of the firms and researcher are study the factors that can influence the firms performance, productivity and profitability (Amjed 2007). Financial leverages and operating liquidity is one of the important factors that can effect the performance and profitability of firms. Such capital structure is the combination of all debts and equity of the firm (Abor 2005). Firms which are highly levered are those which use higher debt portion in their capital structure because in financing decisions debt is considered to be cheaper source of finance and on other hand firms which are unlevered are those which did not use debt in their capital structure (CS). Firms which are more levered that bring more profit for the existing shareholders, on the other hand, it also