This paper is about the performance of paper and board industry after and before recession in Pakistan with the help of financial accounting ratios. We took the four SECP registered companies security paper mill, century paper mill, packages limited, and cherat paper mill in paper and board industry. Data was collected from KSE&SBP sites. The financials ratios that will be used return on asset, (ROA) return on equity, (ROE) earnings per share, (EPS) and debt to equity ratio (DTE). The macro economic variables also will be used annual export rate, (AER) gross domestic product, (GDP) industrial production growth, (IPG) to indicate the growth of Pakistan economy since 2005 to 2011. According to graphs and tables (1 to4) the economic growth of Pakistan reached at maximum level in 2005 and then suddenly not became decreased but also gone toward negative in 2009. The application of research is applied and type is non causal. The research mood is quantitative. We used the conceptual frame work. The different researches did work on performance and financial crises and identified the results as per their researches. Performance is very important for achieve the specific goals the efficiency measurement is one aspect of performance. Efficiency can calculated when we get maximum output with minimum input. The ROA, ROE and EPS of companies decrease after recession. The ROA, ROE and EPS depend on company’s net income. The change in interest rate, foreign exchange rates and equity prices due to recession affects the company’s income or the value of its financial holdings of financial instruments. Mostly companies growth decline after the recession. The security paper mill only survives pretty good after recession as compare to others.