The purpose of this study is to investigate the factors promoting knowledge sharing and knowledge creation in banking sector of Pakistan. With the help of literature review, we identified most important factors in knowledge sharing and knowledge creation including organizational culture, trust, motivation, employee’s attitude and socialization. The populations selected for analysis consist of (250) male and female employees of banking sector of Pakistan and response have been received from 225 respondents. The collection of data was a very difficult task and it has taken almost four months. The data were collected from the five cities of Pakistan including Islamabad, Faisalabad, Multan, Peshawar and Lahore. The results show that all the factors have significant impact on knowledge creation and Knowledge sharing. The findings of the study also show that these factors are necessary for the promotion of knowledge creation and knowledge sharing culture in an organization. The knowledge sharing and knowledge creation are the keys for the success of an organization. A firm or an organization can sustain its competitive edge in market with the help of Knowledge sharing and knowledge creation. The final results of this study conclude that socialization factor is at top, trust factor is at second and motivational factor is at third according to the respondents’ point of view.

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