Sustainable economy of any state directly and positively affects the governance. Pakistan in last 70 years has seen many economic turf and crust. Economist as well as the responsible for the governance do show their concerns on uncertain and frequent fluctuation in Pakistan’s economy. Its high time Pakistan should have sustainable economy for the economic and social development. Sustainable economic development is a key factor which uplifts the standard of living of a common man and that also helps the state to exercise good governance effectively. The current research argues that some social and economic reforms are immediately required to have good governance in the country. Through analysis of the data endeavor would be to find the causes of economic instability and challenges for the government to impart good governance. Qualitative analysis would be carried out by collecting data available on official websites of the government institutions, international monetary agencies, interviews of the selected relevant personnel and views of the common people who are sufferers due to weak governance system in Pakistan. The bottom line is that the sustainable economic development is the key to success in the field of good governance in case of Pakistan.