Abstract
This research assesses the impacts of major macroeconomic including interest rate, GDP growth, inflation rate, exchange rate, foreign directed Investment on the financial performance of sugar mills of Pakistan. Thi study's conceptual framework includes the dependent variable of ROA of the sugar industry and the five variables including the GDP, rate of inflation, interest rate, exchange rate, and foreign direct investment as an independent variable. Ten-year panel data is compared across all 29 sugar mills listed a Pakistan Stock Exchange (PSX) for 2010-2019 via a multiple regression model. This study concluded varying degrees of impact of macroeconomic variables on the profitability of sugar mills of Pakistan. GDP growth showed higher relationship with ROA (a proxy of profitability) but the relationship was negative. Interest rate, Exchange rate, and Inflation rate were found t. have a negative association with ROA. However, FDI had no significant relationship. Certain macroeconomic indicators have a significant impact o the profitability of the sugar industry of Pakistan. Based on the results, mill must constantly monitor the interest rate, exchange rate, and inflation rat because these variables are negatively affecting the sugar Mills' performance. (C) 2021 INT TRANS J ENG MANAG SCI TECH.