The economics of demography provides best understandings to the policy makers to set their priorities for future planning. Demographic transition also helps in creating policy environment that takes maximum advantages of demographic potential of the country. This paper empirically explores the association between demographic variables and economic growth in context of Pakistan for period 1972-2006, using time series econometric technique. We took a point of glance of demographic transition in Pakistan and suggest that demographic transition has major impact on economic growth. The understanding of the demographic transition mechanism is the key to make future plans. Changes in family structure, the status of women and children and the way people work all provides a powerful narrative in which policies can be framed.