This study has examined the impact of inflation on GDP and unemployment rate in Pakistan. It was a longitudinal study for the period in 2000-2010. The data has been taken from secondary sources. The study concludes that inflation insignificantly influences GDP and unemployment and the correlation is negative. The correlation between unemployment and inflation is positive i.e. 0.477 and is insignificant at 10% level of significance. The correlation between GDP and unemployment rate has also been found insignificant with a value of 0.196. It is, therefore, concluded that inflation has a role which influential but for GDP and unemployment with insignificant levels in the macroeconomics factors of Pakistani economy. Key Words: GDP, Unemployment, Poverty, Inflation.