The financial system spurs the economic growth or economic growth necessitates the development of financial system is a million dollar question. Many studies across the globe have been undertaken to find an amicable solution with different degrees of success. This study abridged the gap between knowledge in the current literature to address the specific problem of resolving the economic problems and bringing uplift to the economy of Khyber Pakhtunkhwa by suggesting appropriate measures and measuring the impact of political, religious, economic and cultural factors on perceived economic growth. Survey questionnaires have been used to record responses from respondents to gain insight into their political, religious, cultural and economic perceptions. The study relied on convenience sampling and utilized structural equation modeling technique to test the measurement and structural models to represent relationship among latent variables or constructs. The results of hypotheses tests for overall model revealed an insignificant impact of Perceived Cultural Stability and Perceived Religious Affiliation on Perceived Economic Growth while Perceived Economic Environment and Perceived Political Stability had a significant impact on Perceived Economic Growth. Though the study is limited to evaluation of how different factors impact the perception of economic growth, future studies may evaluate the same from a wider perspective. Furthermore, future studies may also involve other factors that could potentially influence the economic growth. The study was limited to Khyber Pakhtunkhwa; future studies to validate the findings of the present study may be conducted in other regions also.