Abstract: The objective of the study was to highlight the major sources of pollution, economic damages due to different pollutants and to suggest their possible remedies through sustainable economic growth. It is observed that automobiles, industrial sector and solid wastes are the major sources of environmental pollution. According to (Brandon and Ramankutty, 1993), the environmental cost to Pakistan economy was estimated as $1.8 billion. Pakistan currently spends about $17 million per year on pollution-related cleanup activities but it requires $84 million to resolve the country’s environmental problems to save $1.8 billion per year from environmental damages. Finally comprehensive, research and administrative based solution to tackle the environmental issues without affecting the development process is suggested.