Background and Problem Discussion:Since last two decades the Karachi Stock Exchange (KSE) is progressing very well and has made international recognition in stock trading business. This progress is the result of reformation applied by the Security Commission of Pakistan, with help of the Government of Pakistan. But still in comparison with developed stock exchanges of the world, KSE is far behind in terms of infrastructure available for trading and technology using for trade. KSE needs to improve a lot to reach at the level of developed stock markets of the world. Purposes: The main purpose of study is to highlight the shortcomings present in following three aspects of KSE and provide the suggestions to accelerate the development process of it. Organizational structure of KSE Trading and Trading instruments of KSE Settlement process of KSE Secondary purpose of this research is to provide the basic information about the importance and functions of stock market, trading process and player which are involved in trading process and other information with reference to financial literacy. Conclusion: Currently, demutualization and incorporation should be the first priority of the KSE. As demutualization and incorporation is taking time so KSE should start stepping towards internationalization by developing business relations with other regional and international exchanges and try to attract the regional and international companies for cross border listing on its indices. Remaining three suggestions: separate markets for different capital companies, improvement in the derivative market and upgrading in trading, clearing and settlement process can be applied with the growth of KSE but these all are also necessary to achieve the world class standard of stock markets.