The objective of research is to delve into the dividend policy in the FMCG sector of Pakistan. In the research an effort is made to find out whether certain variables (Liquidity, Firm Size & Growth) show similar impact in the Pakistani FMCG industry or they show different behavior in Pakistan. Pakistan is emerging as an international retailer and retail market is becoming attractive for new investors. USC (Utility Stores Corporation), Metro cash & carry and Carrefour are planning to open more and more stores in different areas of Pakistan, so it is clear that FMCG sector of Pakistan is worth studying.